FX.co ★ Natural Gas Drops to 5-Month Low

U.S. natural gas futures have dipped to $3.0 per million British thermal units (MMBtu), marking a five-month low. This drop mirrors the declining gas prices seen in key markets throughout Europe and Asia, influenced by a substantial supply and uncertain demand amid global economic challenges. Newly released data indicates that domestic gas production in the Lower 48 states has reached an all-time high, averaging 106.6 billion cubic feet per day in April. Concurrently, unseasonably warm weather conditions are expected to persist until early May, reducing the demand for gas-driven heating solutions as the northern states transition from the winter season. Additionally, the ongoing trade tensions between the U.S. and China have led to a 20% decrease in China’s LNG imports compared to the previous month. Meanwhile, India has reduced its LNG consumption, driven by declining coal prices.