FX.co ★ US Natgas Prices Rebound on Monday

U.S. natural gas futures have surged by over 3%, reaching above $3.25 per MMBtu. This marks a recovery from the previous week's 12-week low of $3.169. The rise is attributed to updated weather forecasts indicating the onset of colder conditions across much of the nation, suggesting an imminent increase in heating demand. Although demand is expected to stay subdued in the short term, the anticipated arrival of cold weather systems is likely to drive demand higher. Despite some forecasts slightly revising the intensity of the cold, the overall expectation for strengthened demand remains intact. Concurrently, natural gas exports continue to be robust, with shipments to foreign buyers nearly hitting record highs at an average of approximately 18.5 billion cubic feet daily in January. Meanwhile, U.S. gas production has slightly tapered from December's peak levels, settling at around 109.2 billion cubic feet per day. Additionally, the latest storage data revealed a larger-than-anticipated drawdown, with 114 billion cubic feet extracted last week.