Photo: The Lost Ogle
Natural gas prices finally broke through $3 this week on the back of record temperatures, declining production, and increased coal to gas switching. Henry Hub August contracts closed at $3.18 yesterday. CNN reports prices have surged 70 per cent in the past three months.
Baker Hughes data shows gas-directed rig counts have fallen to a 13-year low of 518. It was the eighth drop in the past nine weeks, Reuters reported.
Meanwhile, crude prices continue to soften on weak economic news and a bearish storage report showing crude inventories gained 2.7 million. Analysts were expecting a decline of -1,000,000.
WTI prices were down -1 per cent to $87.60, while Brent was down -0.25 per cent ot $103.17