Forecasts of milder weather and reduced demand for heating caused natural gas to decline

The demand for natural gas decreased 3.67% to 141.7 as a result of moderate weather predictions. Following a 6% decline in U.S. output, EQT and Chesapeake Energy decided to reduce production. As a result of its merger with Southwestern Energy, EQT is now the biggest gas producer in the country.

With a commitment to production reduction measures, gas output in the Lower 48 U.S. states decreased to an average of 100.4 billion cubic feet per day (bcfd) in March from 104.1 bcfd in February. Over the past month, the output has been declining daily and is expected to reach a preliminary seven-week low of 99.3 bcfd.

With the notable exception of the 17.3-bcfd decline in mid-January owing to freezing wells, this would represent the lowest daily production since early February 2023. Through March 18, warmer-than-average temperatures were predicted for the Lower 48 states by meteorologists. From March 19 to 27, however, the same levels were expected to be nearer to cooler than normal.

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