The EIA says natural gas consumption hits a record 141.5 billion cubic feet on January 16 in the United States Lower 48 states, beating the previous record set on December 23, 2022.

blackgrey45 

The EIA says natural gas consumption hits a record 141.5 billion cubic feet on January 16 in the United States Lower 48 states, beating the previous record set on December 23, 2022.

Despite the high inventories. The seasonal curve is looking pretty attractive.

ElChacal 

The seasonal curve is looking pretty attractive.

Curious what do you mean by that?

SMCJB 

Curious what do you mean by that?

Not in front of computer but I did a graph and recall that Jan-Mar prices were usually low and would peak by June or August, although counter-intuitive.
Also, gas is one of the few commodities that are near the prior COVID/Inflation prices even with the current higher rates (strengthening of the dollar).

Natural gas March contract hits 1.91 this morning. Does anybody know the breakeven point for most natural gas producers in the United States? Seems like its getting close I would imagine.

Gas at Henry Hub for tomorrow is $1.73
Gas in West Texas (Waha) for tomorrow is $1.07
Gas in the Appalachians (Eastern Gas-South) for tomorrow is $1.32
So gas at the wellhead is quite a bit lower than the screen.

Obviously if prices go low enough some production will get reduced, but have to remember a about 22% of gas is associated gas, meaning its gas that comes 'with' crude. So as long as the crude is flowing, the gas will flow - no matter what the price. Part of the reason we see negative prices in West Texas occasionally.

March Natural Gas contract hit 1.573 this morning. This sell off is certainly fascinating to me.

Looks like a warm forecast for most of the country in the next couple of weeks.

Reuters :- US natgas drillers cut spending, reduce activity amid price crash

https://www.reuters.com/business/energy/us-natgas-drillers-cut-spending-reduce-activity-amid-price-crash-2024-02-15/

SMCJB 

Gas at Henry Hub for tomorrow is $1.73 Gas in West Texas (Waha) for tomorrow is $1.07 Gas in the Appalachians (Eastern Gas-South) for tomorrow is $1.32 So gas at the wellhead is quite a bit lower than the screen.

Prompt Screen is $1.62
Gas at Henry Hub for tomorrow is $1.53
Gas in West Texas (Waha) for tomorrow is $0.71
Gas in the Appalachians (Eastern Gas-South) for tomorrow is $1.20
So gas at wellhead still quite a bit below Screen & Henry.

https://oilprice.com:443/Energy/Energy-General/Warm-Winter-Drags-US-Natural-Gas-Prices-to-Three-Decade-Low.html

Oilprice.com says warmer than normal winter has led to lower withdrawals from natural gas storage. Warmer temperatures largely due to El Nino in the Pacific.