07.01.202616:49:27UTC+00US Natgas Prices Rise from 10-Week Low

U.S. natural gas futures experienced a significant uptick, climbing over 4% to reach $3.50 per MMBtu, bouncing back from a recent 10-week low of $3.35 observed on January 6. This increase follows a decline in output coupled with forecasts indicating cooler weather and higher heating demand than initially anticipated. In early January, average production in the Lower 48 states decreased to 109.0 billion cubic feet per day (bcfd) from December's peak of 109.7 bcfd, with daily production nearing a three-week low of 108.1 bcfd due to reduced yields in Arkansas and Texas. Although forecasts have slightly cooled, the weather up to January 22 is projected to remain predominantly warmer than usual, which should keep residential and commercial gas demand below typical seasonal levels. Concurrently, inflows to the eight primary U.S. LNG export facilities have increased to 18.6 bcfd, surpassing December's record figure of 18.5 bcfd. Globally, prices have declined to the lowest in several months amid optimism that advancements in peace negotiations in Ukraine might alleviate sanctions on Russia, potentially leading to an increase in future gas exports from the world's second-largest producer.