US natural gas prices rose to $3.48/MMBtu, the highest in over a year, as forecasts for colder weather and lower production prompted utilities to accelerate the start of the storage withdrawal season.
US natural gas prices rise to one-year high
Data from the EIA showed that gas storage fell by 3 billion cubic feet during the week ending November 15, rather than the expected 5 billion cubic feet increase, marking the season's first drop. This decline came as lower prices in the previous week led producers to reduce output. Additionally, recent weather forecasts indicated colder-than-usual temperatures across the West Coast and much of the country, excluding the Gulf Coast.
Concerns on EU supply sustain the prices
Concerns over supply in Europe as the year-end approaches also pushed LNG feed gas flows to a 10-month high. This trend is expected to continue, as uncertainty about the future of Russian gas supplies boosts Europe’s demand for LNG, which in turn raises natural gas prices in the US.
