27.01.202617:17:14UTC+00US Natgas Prices Ease on Warmer Forecasts

US natural gas futures plummeted by over 7%, landing at $6.27 per MMBtu. This decline follows an unprecedented surge of around 117% over the previous five sessions. The drop is attributed to forecasts indicating warmer weather and the return of some frozen wells to operation. The Commodity Weather Group has projected a slightly milder cold snap in Texas and Louisiana through the end of the month, although Appalachia and the northeastern US continue to experience colder-than-average conditions. In the Lower 48 states, natural gas output showed signs of recovery, expected to rise to 93.5 billion cubic feet per day (bcfd) on Tuesday. This follows a decrease to a two-year low of 92.4-92.5 bcfd over the weekend due to approximately 50 bcfd of production being halted by frozen wellheads. Additionally, LNG feedgas is poised to rebound to 13.7 bcfd after sinking to a one-year low of 11.6 bcfd on Monday. In response to these developments, the PJM Interconnection declared a level-1 emergency for Tuesday, mandating all power plants to operate at full capacity. The Energy Department has also temporarily authorized power diversions from large industrial users to safeguard the energy supply for households and hospitals.