U.S. natural gas futures hovered around $3.50 per MMBtu on Monday, near two-month lows, as markets weighed record LNG export demand against moderating domestic weather-driven consumption.
US natgas prices little changed
LNG flows reached a record 16.3 billion cubic feet per day (bcfd) so far in April, boosted by ramping volumes from Venture Global’s new Plaquemines terminal in Louisiana, underscoring strong international demand for U.S. gas.
Despite this export strength, overall domestic gas demand is expected to decline next week due to above-average temperatures across much of the U.S., which are likely to reduce heating needs. However, forecasts for this week were revised slightly upward, providing some near-term support to prices.
Production also remains robust, with output hitting a new daily record of 107.4 bcfd over the weekend. Mild spring weather is expected to persist through April 29, limiting both heating and cooling demand and contributing to a supply-demand imbalance that’s pressuring prices.
Oil may affect drilling activity
Still, the recent drop in crude oil prices could begin to affect drilling activity, particularly in associated gas plays. If rig counts start to decline, it could curb future gas supply growth and lend some support to prices later in the year. Traders are now watching upcoming storage data and weather model updates for clearer signals on market direction.
