US gas prices fall to 30-year low
Economy
According to the Financial Times, natural gas prices in the US have hit a thirty-year low due to record shale gas production and lower demand. Demand for the heating fuel has fallen due to the warm weather, causing natural gas prices to fall.
According to Commodity Weather Group, the current winter is three degrees warmer than the previous climate record set in the winter of 2015-2016.
Increased gas production is also putting pressure on prices, the article explains. Gas storage capacity is 11 per cent fuller this year than last year, forcing some producers to cut back on drilling. For example, Comstock Resources and Antero Resources have already announced rig shutdowns.
It is also noted that lower natural gas prices due to predicted higher temperatures and high storage levels are also being seen in Europe.
Increased gas production is also putting pressure on prices, the article explains. Gas storage capacity is 11 per cent fuller this year than last year, forcing some producers to cut back on drilling. For example, Comstock Resources and Antero Resources have already announced rig shutdowns.
It is also noted that lower natural gas prices due to predicted higher temperatures and high storage levels are also being seen in Europe.
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