Could low natural gas prices lead to a production cut?

 

As U.S. natural gas prices hit a three-year low this week, it prompted growing discussions and speculation that the gas industry should cut its prodduction.

Prices are low because of a combination of things—a mostly mild winter and some recent LNG export plant outages. According to a report by Reuters, the production cut is foremost on the minds of some industry analysts.

“”In our view, producers should likely be looking at activity reductions across all of 2024 given the current (gas price) strip outlook,” Jake Roberts, an analyst at Perella Weinberg Partners’ TPH&Co, told customers in a note.

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