US Natgas Prices Edge Up

US natural gas futures rose slightly to above $1.65/MMBtu after a 7.5% decline in the previous session.

Traders are grappling with a surplus of supply, high storage levels, and weak heating demand due to a mild winter.

However, efforts by producers to curb output are providing some support.

Despite a brief disruption in January due to an Arctic freeze, gas production remains at record highs.

Mild weather has led to stockpiles well above average, with the latest EIA report showing storage levels 22.3% higher than usual.

Chesapeake Energy has cut its 2024 production plans by around 30% following a sharp drop in prices to a 3-1/2 year low.

Other major players in the industry, including Antero Resources, Comstock Resources, and EQT, have also scaled back drilling and production in response to market conditions.