U.S. natural gas futures have rebounded to $4.10 per MMBtu, recovering from a seven-week low of $3.89 recorded on December 16. This upswing is largely driven by near-record levels of LNG (liquefied natural gas) exports. In December thus far, average deliveries to the country's eight major LNG facilities have surged to 18.5 billion cubic feet per day, surpassing November's record high, with expectations of further growth in net exports over the long term.
However, a slightly warmer winter could potentially dampen domestic demand for natural gas and electricity. Despite this, forecasts indicate that winter consumption will exceed production levels, necessitating withdrawals from storage to cover the deficit. Inventory levels commenced this season above the five-year average, albeit slightly lower than the previous winter, and are predicted to remain strong. Meanwhile, production continues to hover at record heights.
