FX.co ★ US Natgas Prices Fall by Over 5%

U.S. natural gas futures experienced a decline of nearly 5%, settling at approximately $4.4 per MMBtu on Tuesday. This drop came as record production levels and substantial storage inventories ensured a robust supply. In November, production in the Lower 48 states averaged 109.7 billion cubic feet per day (bcfd), surpassing October's figure of 107.4 bcfd and breaking the previous monthly peak of 108.3 bcfd recorded in August. This production increase has resulted in inventories being about 5% higher than the seasonal norm. Despite this surplus, weather forecasts predict temperatures will predominantly stay below average through December 10, potentially increasing demand. In the meantime, LNG exports are on the rise, with flows from the eight major U.S. terminals averaging 18 bcfd in November, up from October's record of 16.6 bcfd.