Prospects Of Production Curbs Lift U.S. Natural Gas Futures

1023 ET – Short-covering pushes U.S. natural gas futures sharply higher after Chesapeake Energy says it plans to cut production this year in response to current market conditions. The reaction looks overdone, but “we are keeping a close eye on matching or similar production-reduction comments from the other majors,” says Gary Cunningham of Tradition Energy. “If those come in the next week or so we could see summer push towards $3 and winter make a drive for $4.” The front month March contract is up 11% at $1.753/mmBtu, with double-digit gains also for subsequent months. (anthony.harrup@wsj.com)