What Will It Take For Natural Gas Prices To Break Higher?
Natural gas prices have been stuck for most of this year. So what will it take for prices to break higher? There are a few encouraging things we are seeing in the market:
Natural gas production is tapering off.
After reaching a high in early August above ~103 Bcf/d, Lower 48 gas production has not been the same since. The September average is closer to ~101 Bcf/d. Going into year-end, we do expect production to trend back higher to average around ~102 Bcf/d, but this is below the ~103.5 Bcf/d we had expected.
Heating demand catalyst on the horizon.