U.S. natural gas futures near 1-year high on LNG demand

U.S. natural gas futures climbed above $3.4 per MMBtu on Thursday, nearing the one-year high of $3.5 in December, driven by expectations of stronger global LNG demand and robust domestic consumption.

U.S. natural gas futures near 1-year high on LNG demand

Concerns over Europe's reliance on Russian gas via Ukraine have prompted investors to take long positions in LNG as EU countries seek alternative suppliers. This boosts demand for U.S. LNG, particularly with President-elect Trump signaling support for easing export permit restrictions, encouraging firms to prioritize lucrative exports over domestic sales amid abundant U.S. supply.

U.S. natural gas demand to hit record in 2024, EIA reports

Meanwhile, EIA data indicates domestic natural gas consumption is set to hit a record in 2024, fueled by rising demand from the electric power sector. Markets now await weekly EIA storage data, which is expected to show a continued draw in inventories following last month’s seasonal shift.