Benzinga - by Neil Dennis, Benzinga Staff Writer.
The price of U.S. natural gas rose more than 11% on Wednesday, taking its gains this week to nearly 13% after producer Chesapeake Energy Corp (NASDAQ:CHK) said it was lowering its output.
Natural gas futures have fallen 48% from their most recent peak in early January, hitting a three-and-a-half year low of $1.576 on Tuesday, before embarking on a 13% rally.
Chesapeake Energy said on Tuesday that it would lower its gas production in 2024 as gas prices slumped.
It said it would “defer placing wells on production while reducing rig and completion activity” due to market dynamics. It also lowered its capital expenditure plans for 2024 by 20%.
Shares in Chesapeake Energy jumped 7.8% on Wednesday to $83.76.
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Warmer Weather
The United States Natural Gas Fund (NYSE:UNG), an exchange traded fund that tracks the price of natural gas futures, jumped 11.6% on Wednesday to $16.54, having fallen 40% since Jan. 9.
Heating oil futures have also come under pressure in recent sessions, falling by nearly 10% in the past couple of weeks. Over the same period, the WisdomTree Heating Oil ETF (NYSE:HEAT) has fallen by 8%.
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