US natural gas futures fell below $3.6/MMBtu on Thursday following a smaller-than-expected storage withdrawal of 40 bcf for the week ending January 3, according to the EIA.
US Natural gas drops below $3.6/MMBtu
This figure was well below the anticipated 53 bcf and the five-year average of 93 bcf. The mild weather during the New Year's holiday contributed to reduced demand. Additionally, gas production has seen less of a decline than in previous winters, although colder weather forecasted through January 23 could lead to increased freeze-offs. Meanwhile, LNG exports remain robust, with flows to US export terminals averaging 15.0 bcfd in January, surpassing December 2023's record of 14.7 bcfd due to strong global demand.
High volatility: prices swing over 5% in 10 of last 11 days
Volatility continues to be high, with price fluctuations exceeding 5% on ten of the past 11 trading days, compared to an average daily move of 3.7% in 2024.
