US natural gas futures increased by 2% on Tuesday, approaching $3.9 per MMBtu, recovering from an 11% drop over the previous two sessions and staying near last week’s two-year high of $4.3.
US natural gas rebounds
This rise comes amid expectations of reduced supply and higher heating demand. On his first day in office, US President Trump lifted the moratorium on new LNG export licenses, fulfilling campaign promises. This move enables domestic gas producers to benefit from higher overseas prices and puts pressure on consumers in major LNG markets like Europe and Asia. Additionally, freezing temperatures in the Southern states spurred higher heating demand, straining power grids.
Withdrawal of 258 billion cubic feet of gas
Meanwhile, federal data revealed a substantial withdrawal of 258 billion cubic feet of gas from storage for the week ending January 10, well above the 150 bcf withdrawn during the same period last year.
