U.S. natural gas prices rose more than 5% to around $3.30 per MMBtu on Monday, approaching last week's one-year high of $3.35, as forecasts for colder weather and lower production prompted utilities to accelerate the start of the storage withdrawal season.
Natural gas prices near one-year high
Data from the EIA showed a decline in gas storage of 3 billion cubic feet for the week ending November 15, contrary to expectations of a 5 billion cubic feet increase. This marked the season's first drop, driven by relatively low prices in the previous week, which led producers to reduce output. Additionally, the latest weather forecasts predicted colder-than-usual temperatures on the West Coast and across much of the U.S., excluding the Gulf Coast.
Supply concerns
Supply concerns in Europe, especially as the year-end approaches, pushed LNG feed gas flows to a 10-month high. These concerns are expected to persist, as increasing uncertainty over Russian gas supplies drives higher demand for LNG, which in turn is supporting U.S. natural gas prices.
