Natural gas prices sometimes track oil prices and rig counts drive production. Or at least this is how it is “supposed to work.” Though it may in the future, the gas market is not operating in accordance with these long held tenants.
Production is flat despite a significant and rapid decline in rig counts, and the price of gas has moved up modestly while oil has, on a percentage basis, skyrocketed. While a few months of abnormal behavior does not mark a sea change in the natural gas business, many market analysts are reevaluating many fundamental assumptions about how the market operates.
Visit this link to download the full Natural Gas Market Indicator. Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.