US Natural Gas Prices Fall to Three-Year Low
February 12, 2024
Crude oil prices were higher again on Friday along with ULSD prices. Energy prices were up by about 2.5% this past week mainly due to Israel continuing its missile attacks against Hamas in Gaza. The news that Ukraine drones had fired missiles at 2 Russian refineries on Friday also help prices rally higher. Ukraine has recently increased the attacks on refineries within Russia that could tighten diesel supplies.
Baker Hughes reported its rig count on Friday, and it showed that no crude oil rigs came online last week keeping the oil rig total flat at 499 oil rigs.
US natural gas prices continued to fall this past week and increased the oil to gas ratio to their highest level since May 2012, which should prompt energy firms to drill for more oil and less gas. Natural gas prices fell to a three-year low for a third consecutive day on Friday, falling by 28% so far this year.
A survey by Platts found that OPEC+ crude oil production in January totaled 41.21 million bpd down some 340,000 bpd from December but still far less than the 700,000 bpd cuts that had been agreed upon by the group.
Saudi Aramco’s decision last month to halt an expansion of its output capacity is because of the energy transition, Energy Minister Price Abdulaziz bin Salman said.