FX.co ★ US Natgas Prices Fall to 11-Week Low

U.S. natural gas futures have declined by over 5%, reaching $3.00 per MMBtu, marking the lowest level since late January. This decrease is attributed to record production levels and forecasts of milder weather, which have dampened expectations for demand. In April, output in the Lower 48 states reached unprecedented heights, with daily production soaring to 108 billion cubic feet per day (bcfd). Additionally, forecasts indicate warmer-than-usual temperatures into early May, which will likely reduce heating needs and enable more gas to be stored. Concurrently, the uncertainty surrounding President Trump's evolving tariff policies has generated apprehensions about slower global growth and diminished energy demand. Nonetheless, gas exports remain robust, with LNG (liquefied natural gas) flows reaching a record high of 16.1 bcfd this month, driven by heightened activity at a major export facility currently under construction in Louisiana.