08.01.202616:24:06UTC+00US Natgas Prices Fall 3%

U.S. natural gas futures dropped by approximately 3%, settling at $3.42 per million British thermal units (MMBtu). This decline is attributed to a slight uptick in daily production and weather forecasts predicting predominantly mild conditions over the next fortnight, likely resulting in heating demand remaining below typical seasonal levels. Although there is an anticipation of a brief cold spell with heightened demand towards the end of January, overall temperatures are expected to stay above average nationwide through January 23. In parallel, the most recent Energy Information Administration (EIA) storage report indicated that energy companies withdrew 114 billion cubic feet of natural gas for the week ending January 2. This withdrawal is notably larger than usual, surpassing last year’s figure of 51 billion cubic feet and exceeding the five-year average of 92 billion cubic feet, underscoring increased demand during this timeframe. Concurrently, exports continue to bolster the market, with liquefied natural gas (LNG) feedgas flows averaging 18.5 billion cubic feet per day (bcfd) so far this January, close to record levels and slightly above December’s peak.