US natural gas futures climbed more than 4% on Friday to above $3.10 per MMBtu, supported by forecasts of a cold front moving into the Northeast this weekend. Over the full week, however, prices are down nearly 4%, as rising production and smaller-than-normal storage withdrawals have eased market tightness.
Average output in the Lower 48 states has increased to 108.7 billion cubic feet per day so far in February, up from 106.3 bcfd in January and nearing December’s record of 109.7 bcfd. The US Energy Information Administration reported a 144 bcf storage withdrawal for the week ended February 13, slightly below the five-year average and well under last year’s 182 bcf draw. Inventories remain about 6% below typical levels, but analysts expect most of that deficit to be eliminated by early March, given that mild weather is curbing heating demand.
Meanwhile, average feedgas flows to the eight US LNG export facilities have risen to 18.6 bcfd so far in February, close to December’s record levels.
