Natural gas futures rallied on Monday after the largest U.S. natural gas producer announced it would cut 1 Bcf/d of output through the end of March, chopping into a supply glut caused by one of the mildest winters on record.

At A Glance:

  • EQT slashes 1 Bcf/d of output
  • Lower 48 production at 101.2 Bcf/d
  • Texas cash prices trade negative

The April Nymex gas futures contract rose almost to within 1.0 cent/MMBtu of the $2.000 level, trading as high as $1.989 before noon ET. By the afternoon close, April had given back around half of its gains to settle at $1.916, up 8.1 cents day/day. 

Nymex futures jumped early in the morning after Appalachian Basin natural gas producing giant EQT Corp. said it would curtail up to 40 Bcf of production through March “in response to the current...