FX.co ★ US Natural Gas Rises to 7-Month High

U.S. natural gas futures have exceeded $4.1 per MMBtu, marking a seven-month high, driven by increased heating demand and robust LNG exports to Europe and Asia. The anticipation of colder weather in the U.S. has bolstered the demand for heating, which is heavily reliant on natural gas. Simultaneously, the average flow of gas to the country’s eight major LNG export facilities reached 16.5 billion cubic feet per day in October, surpassing the previous month's figure of 15.7 bcfd, and setting a new record for the period just before the month's end.

This significant flow of LNG is consistent with heightened demand from Europe, where the gradual reduction of reliance on Russian gas has coincided with declining reserves in gas trading hubs. In addition, the U.S. administration has been advocating for commitments from Asian countries, who are in the midst of trade negotiations, to increase imports of U.S. energy. Despite these dynamics, domestic natural gas production remains robust, averaging 107 bcfd in October. Furthermore, as of the week ending October 27th, national storage in the Lower 48 states increased by 74 bcf, outpacing the forecasted rise of 71 bcf.