FX.co ★ US Natgas Prices Fall from 3-Year High

U.S. natural gas futures experienced a decline of over 2%, dipping below $4.5 per MMBtu. This decrease follows a near three-year peak of $4.65 recorded on November 13. The downturn can be attributed to unseasonably mild weather, which has temporarily reduced the demand for heating. Additionally, production in the Lower 48 states hit a new high of 109 billion cubic feet per day (bcfd) in November, contributing to storage levels that are now 4.5% above the average for this time of year. Despite the abundant supply, there remains a robust demand for liquefied natural gas (LNG) exports, with November figures averaging 17.8 bcfd, up from 16.7 bcfd in October. This demand surge is largely driven by Europe in response to diminished Russian gas flows. Market participants are also considering forecasts of colder weather in early December, which could potentially increase heating demand and provide upward support for natural gas prices in the short term.