FX.co ★ US Natgas Prices Rise to Nearly 3-Year High

U.S. natural gas futures have climbed by over 1%, reaching approximately $4.6 per MMBtu, marking their highest point since December 2022. This increase is driven by robust export demand and forecasts predicting colder weather conditions in early December. Although a brief period of warmer temperatures is anticipated later this month, weather models indicate a return to colder conditions, likely boosting heating demand. Liquefied Natural Gas (LNG) exports remain strong, with flows to the eight major U.S. terminals averaging 17.8 billion cubic feet per day (bcfd) in November, up from a record 16.7 bcfd in October. This rise reflects the ongoing efforts of European buyers to find alternatives to Russian gas. Simultaneously, U.S. gas production in the Lower 48 states has reached a record level this month at 109 bcfd, which is helping to keep storage levels approximately 4% above seasonal averages. Furthermore, the International Energy Agency has observed that global demand for oil and gas could continue to grow through 2050, signaling a more moderate perspective on the energy transition.