FX.co ★ US Natgas Prices Fall to 13-Week Low

U.S. natural gas futures have fallen below $3.10 per MMBtu, marking their lowest point in approximately 13 weeks. This decline follows storage data revealing a substantially smaller withdrawal than anticipated, suggesting a looser balance between supply and demand. Specifically, gas inventories decreased by 71 billion cubic feet in the last week, significantly below market forecasts and notably less than both the draw from last year and the five-year average. Contributing to this downward pressure, there has been a recent reduction in flows to LNG export plants, thereby diminishing a crucial demand source for U.S. gas. Nevertheless, LNG feedgas flow levels are beginning to recover. Although production has slightly decreased from the record highs seen in December, it remains at historically high levels. While weather predictions still indicate colder-than-usual conditions extending into late January, including a particularly cold period around mid-month, demand projections for the upcoming week have been adjusted downward.