US natural gas price rally set to be short-lived: analysts

Natural gas outlook

Production cuts announced by US gas companies led US natural gas futures to rally in price this week after hitting 10-year lows in mid-January, but analysts say record storage levels and warm weather conditions leading to reduced demand will constrain further price rises.

Natural gas prices hit their lowest level in a decade on January 19, with the New York Mercantile Exchange (Nymex) February Henry Hub price sinking to $2.36 per million British thermal unit (MMBtu), the lowest since February

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