US natural gas futures climbed above $2.9/MMBtu, driven by expectations of higher demand as colder weather sets in and production declines.
US natural gas futures climb above $2.9/MMBtu
As temperatures drop, gas consumption typically increases, putting upward pressure on prices. Additionally, US LNG export activity has surged, with daily gas flows to export plants reaching a 10-month high last Friday. Natural gas exports to the seven major LNG export plants have averaged 13.3 billion cubic feet per day (bcfd) in November, up from 13.1 bcfd in October, indicating stronger demand for US natural gas abroad.
Output decreases
At the same time, natural gas production in the Lower 48 States fell to 100.3 billion cubic feet per day (bcfd) in November, down from 101.3 bcfd in October. Meanwhile, recent data from the EIA showed that US utilities added 42 billion cubic feet of gas to storage in the week ending November 8, leaving inventories 6.1% above the seasonal average.
