FX.co ★ US Natgas Prices Extend Losses after EIA Data

U.S. natural gas futures have seen a decline of over 6.5%, settling at $3.55 per MMBtu, primarily due to a larger-than-anticipated increase in storage levels and predictions of mild weather alongside reduced demand. According to the Energy Information Administration (EIA), a notable storage injection of 57 billion cubic feet was recorded last week, significantly surpassing the five-year average of 17 billion cubic feet. These mild weather conditions have led to subdued demand, allowing utilities to amass gas reserves notably earlier than usual for this period of the year. Remarkably, storage additions were potentially seen as early as March, an occurrence that has only been observed once in the past. Looking ahead, forecasts indicate near-normal temperatures through April 25. Despite this, liquefied natural gas (LNG) exports remain robust, with export flows reaching 16.1 billion cubic feet per day so far this April. Conversely, gas production has seen a slight decline from its record highs. Moreover, wider energy markets continue to experience pressure due to persistent uncertainties related to former President Trump's changing tariff policies, which are contributing to concerns about global economic growth.