Natural Gas Breaks Resistance on Lower Daily Production Data

Natural Gas Breaks Resistance on Lower Daily Production Data

By Tim Silas | Reporter

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Natural gas prices for June ’15 delivery bolted higher Tuesday morning after Bentek Energy reported that natural gas production fell overnight by 1.2 Bcf/day to 72 Bcf.

According to Bentek, maintenance events in the Northeast cut production while the decline in Southeast production was driven by a decrease in offshore production.

Natural gas prices rose higher Tuesday to $3.072 per mmBtu Tuesday, breaking the relative resistance of the $3.00 level which the commodity had tested and traded around in recent sessions.

The U.S. Energy Information Administration is set to release its Weekly Gas Storage Report on Thursday, May 21 at 10:30am EST. Industry analysts are expecting an injection of 103 Bcf.

The early estimate for the following week’s report on May 28 is currently 106 Bcf, but the estimate could be revised down based on this week’s lower production.

To contact the reporter for this story, please email tim@natgasinvestor.com.

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