FX.co ★ US Natgas Prices Ease on Warmer Forecasts

U.S. natural gas futures experienced a decline of over 2.5%, settling at $3.71 per MMBtu. This decrease is attributed to forecasts of warmer weather and the reactivation of previously frozen wells, which have mitigated supply concerns. The National Oceanic and Atmospheric Administration predicts milder temperatures starting the first week of February, likely curbing anticipated heating demand. In the Lower 48 states, output is expected to recover to approximately 93.5 billion cubic feet per day (bcfd), following a drop to two-year lows of 92.4-92.5 bcfd over the weekend. During this period, approximately 50 bcfd of production was halted due to frozen wellheads. Moreover, LNG feedgas flows are rebounding, expected to rise to around 13.7 bcfd after hitting a one-year low of 11.6 bcfd on Monday, further supporting expectations of an improved supply situation.