FX.co ★ US Natgas Prices Fall to 12-Week Low

U.S. natural gas futures have decreased over 3%, reaching approximately $3.30 per MMBtu—marking the lowest level since October 17. This decline comes as weather forecasts have shifted to predict milder conditions, reducing anticipated heating demand for the upcoming two weeks. Current forecasts indicate warmer-than-average temperatures for most of the U.S., particularly in the South. Only a brief period of colder weather is expected in sections of the central U.S. between January 9 and 15, after which conditions are expected to turn warm again. Colder weather is expected to remain limited to the northern regions towards the month's end. Despite these forecasts, positive supply signals persist. LNG exports are near record highs, with gas flows to major export facilities averaging around 18.5 billion cubic feet per day in January. On the domestic front, production has slightly declined, dropping to 109.2 billion cubic feet per day from December's record levels. Furthermore, the latest storage report indicated a larger-than-typical withdrawal of 114 billion cubic feet, significantly surpassing figures from last year and the five-year average.