0942 ET - U.S. natural gas futures pick up from yesterday's selling amid prospects that lower oil prices could curb U.S. production. "I think the market is stuck between the optics of bad cash, high storage injection and an increasingly bullish look for forward gas balances with oil prices tanking," TP ICAP's Scott Shelton says in a note. Diamondback Energy's warning that it's cutting rigs and capital expenditures because of low oil prices, and its view that U.S. onshore production will decline if prices continue lower, will mean less associated gas production available to meet LNG export growth, Shelton adds. "This has resulted in a forward market-led rally." Natural gas for June delivery is up 1.5% at $3.604/mmBtu. (anthony.harrup@wsj.com)
(END) Dow Jones Newswires
May 06, 2025 09:42 ET (13:42 GMT)
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