FX.co ★ Natural Gas Eases from 3-Year High

U.S. natural gas futures recently decreased to $4.95 per MMBtu, slightly down from the three-year peak of $5 per MMBtu recorded earlier on Thursday. This decline followed the release of storage data that exceeded expectations. According to a report from the Energy Information Administration (EIA), domestic gas storage levels declined by 12 billion cubic feet during the third week of the withdrawal season, which fell short of the anticipated 18 billion cubic feet reduction. Despite this data, natural gas futures have surged nearly 70% since their October lows, primarily due to a significant increase in export demand. European nations have continued to distance themselves from Russian natural gas and have committed to completely phasing out Russian liquefied natural gas (LNG) by the end of 2027. Simultaneously, U.S. LNG exports showed robust growth, increasing by 40% annually in November to reach 10.7 million tonnes, even as production levels climbed. Additionally, demand was supported by weather forecasts predicting a cold front at the start of the North American winter, particularly affecting the Northeast and the Great Lakes regions with lower temperatures.