Strong and steady U.S. oil and natural gas production has in 2023 outpaced demand and weighed down prices. Analysts are increasingly joining a chorus of calls for a pullback on output – or even sharper price pressure moving into the spring.

Natural Gas Prices

West Texas Intermediate crude traded around $75/bbl early this week, far from the highs above $120 last year. New York Mercantile Exchange gas futures recently hovered around $2.500/MMBtu, down from the $6 level late in 2022 and the nearly $10 highs of last summer.

The price strength in 2022 spurred production increases, but demand has since tapered substantially. Crude consumption declined in recent months amid weakening economic activity in the United States as well as Europe and parts of Asia. Natural gas demand eased dramatically in...