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US Natural Gas Prices Recovered from 2-Week Low: What's Next?

PART:
1 2 3 4 5 6 7 8
Part 6
US Natural Gas Prices Recovered from 2-Week Low: What's Next? PART 6 OF 8

US Natural Gas Production Impacts Natural Gas Prices

Weekly US natural gas production 

Market data provider PointLogic reported that US dry natural gas production rose 0.4% to 70.4 Bcf (billion cubic feet) per day from January 19–25, 2017. Dry natural gas production fell 4% from the same period in 2016.

The rise in natural gas production is bearish for natural gas (FCG) (BOIL) (UNG) prices. Lower natural gas prices have a negative impact on natural gas producers’ earnings such as Newfield Exploration (NFX), Antero Resources (AR), and Memorial Resource Development (MRD). For more on natural gas prices, read Part 1 of this series.

US Natural Gas Production Impacts Natural Gas Prices

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Natural gas imports from Canada fell 1.6% to 5.8 Bcf per day from January 19–25, 2017. Imports from Canada were 6.6 Bcf per day during the same period in 2016. Read Natural Gas Production: Bearish for Natural Gas Prices in 2017? for more on monthly natural gas production and forecasts.

Trump’s impact on natural gas production  

In his energy policyPresident Trump highlighted that he would reduce regulatory restrictions on the exploration and production of natural gas and crude oil. He said that he would open more federal land for exploration and production activity. His actions could increase natural gas supplies in the oversupplied natural gas market.

Natural gas production influences US natural gas inventories. For more on natural gas inventories, read Part 3 and Part 4 of this series. High production can pressure natural gas prices.

Lower natural gas prices can have a negative impact on oil and gas producers’ earnings like Newfield Exploration (NFX), Antero Resources (AR), and Memorial Resource Development (MRD).

In the next part of this series, we’ll take a look at the latest updates on natural gas consumption.

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