OPEC’s decision to shrink oil production is both a blessing and a curse for natural gas markets. It’s bad news for the U.S. gas bulls enjoying a rally that has propelled prices to the highest in two years. Crude explorers have more incentive to drill with oil futures surging on the promised cuts by the Organization of Petroleum Exporting Countries. And with every barrel of oil they pull out of the ground, they’ll inevitably pull out gas, a byproduct that threatens to add to a U.S. supply glut that’s already hit a record. “These guys will drill more, and you are going to get that extra gas at an inconvenient time,” said Jason Schenker, president of Prestige Economics LLC in Austin, Texas. “It’s bearish for U.S. gas for the next three- to nine-month window.” While the potential flood of so-called associated gas threatens to derail the rally in U.S. […]

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