FX.co ★ US Natgas Prices Climb on Rising LNG Flows

U.S. natural gas futures climbed 7% to reach $4.10 per MMBtu on Friday, driven by increased flows to liquefied natural gas (LNG) export facilities. This surge includes the anticipated reactivation of a liquefaction train at Freeport LNG in Texas. LNG feedgas levels are poised to rise for the fourth consecutive day, hitting 17.9 billion cubic feet per day (bcfd), recovering from a one-year low of 11.5 bcfd earlier in the week due to disruptions from winter storms. This price increase occurs despite predictions of milder weather and reduced heating demand over the upcoming week, as well as a rebound in U.S. production from wells that had been temporarily frozen. In January, average production in the Lower 48 states decreased to 106.2 bcfd, down from a record 109.7 bcfd in December, although daily output showed an upward trend for the fifth consecutive day, reaching 105.7 bcfd after plummeting to a two-year low of 92.5 bcfd on Sunday. Weather forecasts indicate colder-than-normal conditions will persist through February 14. Futures are set to record a 14% increase in January, following a 23% drop in the previous month.