US natural gas futures traded near $3 per MMBtu on Wednesday, extending losses from earlier in the week, as the IEA announced plans for a record release from strategic oil reserves. If approved, the move would exceed the 182 million barrels drawn down in 2022 after Russia’s invasion of Ukraine and requires unanimous backing from member countries in a vote scheduled for Wednesday.
Despite the proposed release, market worries remain elevated, with the world’s largest LNG export terminal still offline and the Strait of Hormuz continuing to be closed. Even so, US natural gas prices have been more insulated than other global benchmarks, underpinned by abundant domestic production and LNG export facilities operating close to capacity.
At the same time, warmer-than-normal temperatures across much of the United States through late March are expected to dampen heating demand, adding further downward pressure on prices.
