Natural Gas Prices Are Sliding, But They're Still Above $3

kate upton aubrey mcclendonAubrey McClendon with relative Kate Upton

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.

Embattled natgas producer Chesapeake Energy has seen its share price recover 30 per cent since trading around $13 in May. The stock was up 1.37 per cent today.

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

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.