FX.co ★ US Natgas Prices Fall 3% Toward 7-Week Low

U.S. natural gas futures declined by 3% to $3.9 per MMBtu, approaching a near seven-week low. This decrease is primarily attributed to forecasts projecting above-average temperatures across much of the nation ahead of Christmas, which is likely to lead to decreased heating demand. The market continues to feel the pressure of record-high production and substantial storage levels, with Lower-48 production estimated at 109.7 Bcf/d in December, maintaining the record figures from November. According to the EIA, 167 billion cubic feet were withdrawn from storage for the week ending December 12, slightly less than anticipated, suggesting that inventories remain 0.9% above the current five-year average. Concurrently, average deliveries to the eight primary U.S. LNG export facilities reached 18.6 Bcf/d, exceeding November's record of 18.2 Bcf/d, indicating robust export activity.