FX.co ★ US Natgas Prices Rise Toward 8-Month High

US natural gas futures have exceeded $4.30 per MMBtu, reaching their highest levels since March, driven primarily by near-record demand for LNG exports. Current average flows to the nation’s eight largest LNG facilities have surpassed those recorded in October, hitting 17.4 billion cubic feet per day in November, and are expected to increase further. This surge in demand is partly due to Europe's efforts to find alternatives to Russian gas and Asian buyers entering into long-term agreements for US supply. However, warmer-than-average temperatures until November 21 are anticipated to reduce heating demand. Production remains robust, with Lower-48 states seeing output rise to 108.7 billion cubic feet per day, surpassing October figures and approaching annual highs, which has facilitated above-average storage injections. Despite inventories being approximately 4% above the seasonal average, the latest data from the EIA indicates a smaller-than-expected build in storage reserves.