March’s contract is down 16 cents from last Friday’s settlement, now trading near $2.90/MMBtu off of a respite from frigid central US weather.
Natural gas production continues to make its rapid recovery and Baker Hughes has released an update in total rig counts showing that additional rigs are being put back online.
Production has recovered to 85.9 Bcf/D which represents a 14.7% increase from it’s yearly low last week of 74.9 Bcf/D.
Weather-driven demand is continuing to temper, although demand for LNG exports is providing a small bit of support, recovering a staggering 295% since its yearly low also witnessed last week of 2.2 Bcf/D.
Granted, demand for LNG exports only now stands at 8.7 Bcf/D. Demand this year in comparison to last year however has now had a chance to catch up, with 2021 cumulative RessComm, Industrial, and Power demand within 644 Bcf higher than the five year average.
Source: Gelber and Associates
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