US natural gas futures fell to around $2.67 per MMBtu on Wednesday, breaking a five-session rally that had been fueled by recent production declines and near-record flows to LNG export facilities. Average output has dropped about 3.9 bcfd over the past 15 days, hitting an eleven-week low of 108.2 bcfd. At the same time, deliveries to major LNG export terminals have risen to 18.9 bcfd so far in April, putting the month on track to set a new record.
Still, prices remain under pressure amid comfortable supply levels. Mild spring weather has enabled robust storage injections, leaving inventories roughly 7% above the five-year average as of April 17. In addition, weather forecasts have turned warmer across the US Midwest through late April, which is expected to curb heating demand and cap power-sector gas consumption.
