FX.co ★ US Natgas Prices Rises on Thursday

U.S. natural gas futures experienced a surge of over 3%, reaching $3.85 per MMBtu, following two sessions marked by significant volatility. This movement comes amid fluctuating weather forecasts, leading to uncertain demand projections. The Commodity Weather Group has reported slightly cooler temperatures in the eastern U.S. for the first week of February, which are expected to give way to milder conditions in the northern states the week after. Last week, gas inventories likely decreased by over 230 billion cubic feet, exceeding the five-year average withdrawal of 208 bcf, although stocks are anticipated to remain approximately 5.4% above the five-year average, just before the release of the EIA's storage report on Thursday. U.S. gas production rebounded to around 102.1 bcfd as output recovered from storm-related disruptions that had temporarily taken more than 15% of the supply offline over the weekend. The market remains on edge following an unprecedented, weather-induced rally that surprised traders, maintaining a climate of price volatility.