Commodities Update
Will Chesapeake’s supply cut rescue US natural gas prices?
The announcement of a production cut by the second largest US natural gas producer, Chesapeake, caused the US natural gas price to jump yesterday. However, we do not expect this to stop the price of US natural gas dropping below $2 per MMbtu later this year, from around $2.40 at present, before recovering to $3 in 2013.
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