FX.co ★ US Natgas Prices Rebound on Tuesday

U.S. natural gas futures experienced a rebound, reaching $3.6 per MMBtu on Tuesday, following a 2.2% decline in the previous session. This upturn was prompted by a decline in production coupled with record levels of LNG exports. Output was set to decrease by approximately 4.8 billion cubic feet per day (bcfd), dropping to a seven-week low of 102.6 bcfd on Tuesday. Additionally, the U.S. continues to maintain its position as the leading global exporter of LNG, bolstered by strong international demand despite recent domestic slowdowns. Last April, LNG exports reached a milestone average of 16.0 bcfd. Looking ahead, meteorologists have forecasted that temperatures in the Lower 48 states will remain predominantly warmer than average until May 21. Analysts predict that the combination of mild weather and high production levels could result in record injection rates in May. Meanwhile, data from the Energy Information Administration (EIA) indicated a larger-than-anticipated storage build of 107 billion cubic feet (bcf) for the week ending April 25, attributed to the mild weather conditions which reduced demand. This increase surpasses both the previous year's rise of 64 bcf and the five-year average increment of 58 bcf. Accordingly, storage levels are now aligning closely with typical seasonal averages.