FX.co ★ US Natgas Prices Edge Down

U.S. natural gas futures have decreased to nearly $4.53 per million British thermal units (MMBtu), attributable to near-record levels of production and robust storage capacity that have ensured a well-supplied market. In November, production in the Lower 48 states has averaged about 109.1 billion cubic feet per day (bcfd), an increase from 107.3 bcfd in October and surpassing the former monthly high of 108.3 bcfd recorded in August. This increase has contributed to inventory levels that are approximately 4% above the seasonal average. Despite this robust supply, cooler weather has led to the first storage withdrawal of the winter season. Forecasts anticipate mild weather conditions through November 26, but expect colder-than-normal temperatures from November 28 to December 5, which may boost demand. Additionally, Liquefied Natural Gas (LNG) exports are on the rise, with flows to the eight major U.S. terminals averaging 18 bcfd in November, up from a record 16.6 bcfd in October.