If the future price of natural gas remains higher than the spot price, would producers be incentivized to tighten production? Market participants discussed the possibility that the contango in natural gas would keep some producers from reining in supply.

NGI spot price data show that the Henry Hub natural gas price rose 16.5 cents Monday to average $1.535/MMBtu. Along the forward curve, May 2024 Henry Hub basis was $1.842, with prices higher further out on the forward curve, according to NGI’s Forward Look.

The price situation, a contango, is usually a sign that the cash market has too much supply, analysts said. 

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