US Gas Prices Rise After EQT Curbs Output to Fight Glut - Bloomberg

US Gas Prices Jump After EQT Curbs Output to Fight Supply Glut - Bloomberg

Gas Prices Jump as Top US Driller Slashes Output to Fight Glut

- Mild weather has sent US natural gas prices tumbling
- EQT cut production by 1 bcf/day starting in late February

US gas futures have collapsed in recent months, with the mild winter reducing demand following increase in production from shale drillers. Photographer: Luke Sharrett/Bloomberg

US natural gas prices surged after EQT Corp., the nation’s largest producer, said it will slash output after an unseasonably warm winter and the resulting supply glut triggered a price collapse.

EQT will curtail about 30 to 40 billion cubic feet of net production through March in response to low prices, it said in a statement Monday. That’s 5% to 7% of the company’s quarterly output, based on fourth-quarter results. Total US gas production is about 100 billion cubic feet per day, down slightly from a record earlier this year.