FX.co ★ US Natgas Prices Rise to 4-Week High

U.S. natural gas futures have surpassed $3.70 per million British thermal units (MMBtu), marking a four-week high. This increase is attributed to a decrease in supply coupled with record levels of LNG exports, which have bolstered prices. Production is anticipated to decline by approximately 5.5 billion cubic feet per day (bcfd), reaching its lowest point in ten weeks at 102.6 bcfd. Additionally, operations at the Freeport LNG facility in Texas are recovering swiftly following an outage earlier this week. Deliveries to the plant jumped from 0.3 bcfd on Tuesday to a forecasted 1.8 bcfd by Wednesday. In April, LNG exports averaged an unprecedented 16.0 bcfd, solidifying the United States' position as the leading global exporter of LNG. Meanwhile, analysts project that gas stored underground increased by 101 billion cubic feet (Bcf) last week, significantly higher than the five-year average of 79 Bcf. This rise is attributed to mild weather conditions and reduced demand, thereby increasing the surplus by 27 Bcf compared to the average. However, current storage levels remain 415 Bcf below the previous year's figures.