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.