Friday, March 16, 2012

U.S. Natural Gas Rig Count Declines Again, Now a 10-Year Low

Natural gas is up over 2% (5.2 cents) at $2.33.
Here's last weeks rig count. And here's Reuters with this week's:
The number of rigs drilling for natural gas in the United States fell to a 10-year low this week as producers cut back on gas-related drilling operations.

The gas-directed rig count fell for the 10th straight week, down by seven to 663, its lowest since May 2002, data from Houston-based oil services firm Baker Hughes showed on Friday.

The cutbacks in drilling followed a crash in gas prices to a 10-year low, driven by weak winter demand.
Front-month natural gas futures on the New York Mercantile Exchange showed little reaction to the data, remaining about 3 cents higher on the day at $2.308 per million British thermal units....MORE

The recent high was 934 on October 28.
We are still looking for a sub-$2.00 bottom sometime in the May-June period.