WILDFIRES IMPACT CANADIAN GAS PRICES
MARKET OUTLOOK ON NATURAL GAS . WILDFIRES IMPEDE CANADIAN GAS EXPORTS, DRIVING PRICES UP Natural gas prices soared by 7.26% to settle at 212.7 as a result of wildfires hindering gas exports from Canada, which reached a 25-month low. The disruption in supply due to the wildfires contributed to the bullish sentiment in the market. PRODUCTION DECLINE RAISES CONCERNS FOR FUTURE SUPPLY Concerns regarding a potential future decline in natural gas production further supported the upward trend in prices. Recent data revealed a reduction in the number of rigs for drilling gas, as evidenced by the Baker Hughes report. The gas rig count fell by 16 to 141 last week, marking the lowest level since April 2022 and the largest weekly decline since February 2016. RECORD US GAS OUTPUT MAINTAINS STABILITY DESPITE PRICE DECLINE Despite the recent decline in prices, average gas output in the US Lower 48 states remained steady at a record level of 101.4 billion cubic feet per day (bcfd) throughout May