Three oil companies hit by falling natural gas prices

Natural gas prices have fallen this year due to warm weather and high storage levels in Europe and elsewhere. US prices fell 45% to $2.46 per million BTUs.

The fall affected the shares of some natural gas producers, although not as much as the price of the commodity itself. However, as natural gas prices remain low, the impact could intensify and put pressure on the larger group of companies. Shares of oil producers, which also produce significant volumes of gas, are also vulnerable to declines. Overall, free cash flow for large-cap manufacturers could fall as much as 33% from 2022 levels, according to Citi analyst Scott Gruber. This could prevent some oil companies from increasing their dividends and buybacks as much as they did last year.

Content Source

News Press Ohio – Latest News:
Columbus Local News || Cleveland Local News || Ohio State News || National News || Money and Economy News || Entertainment News || Tech News || Environment News

Related Articles

Back to top button