FX.co ★ Natural Gas Prices in the US Continue to Weaken

U.S. natural gas futures have declined by over 2%, trading at approximately $4 per MMBtu. This marks the third straight session of losses and represents the lowest price point since late October. The decline is influenced by weather forecasts predicting above-average temperatures across much of the country leading up to Christmas, potentially reducing heating demand. Concurrently, record production levels and abundant storage supplies are also exerting pressure on prices. LSEG reports that Lower-48 states' output has averaged about 109.7 billion cubic feet per day in December, consistent with the record figures observed in November. Recent data from the EIA indicates that U.S. utilities withdrew 177 billion cubic feet from underground storage during the week ending December 5, surpassing expectations and marking the first noteworthy storage draw of the season. In the international arena, U.S. LNG exports remain strong, with November shipments reaching a peak of 10.9 million metric tonnes, approximately 70% of which were shipped to Europe.