“An exceptionally mild winter to date has pressured U.S. natural gas prices to levels below our prior expectations and below levels that are economically attractive for developing dry gas plays in the U.S., shale or otherwise,” said Chesapeake CEO Aubrey McClendon in a press release.
The announcement “signals that producers are beginning to respond to the sell-off that has gripped the gas market all winter,” WSJ.com reported. “Mild temperatures coupled with relentless shale gas production has battered the market, with prices still off 18% in 2012 despite Monday’s rally.”
U.S. Natural Gas Fund
Full disclosure: Tom Lydon’s clients own UNG.