U.S. Gas Drillers Are About To Start Cutting Output

Some U.S. natural gas producers that didn't hedge their output this year are having to sell their gas at prices that are below their breakeven price. At less than $2.50 per million British thermal units, natural gas prices have fallen more than threefold over the last six months with no immediate prospect of a reversal.

And supply is about to tighten. In an article published earlier this week, Reuters cited industry insiders and analysts as warning that the gas price drop from more than $9 per mmBtu in August last year to $2.405 at the close of…