FX.co ★ US Natgas Prices Edge Up from 3-Week Low

U.S. natural gas futures have risen to approximately $3.9/MMBtu, recovering from a dip experienced over the last three weeks. This uptick follows the resumption of operations at the Freeport LNG export facility in Texas, which had been temporarily shut down due to a lightning strike earlier in the week. The restart is expected to enhance gas flows to LNG export terminals, with volumes already averaging 15.7 billion cubic feet per day (bcfd) in March, surpassing the previous peak of 15.6 bcfd in February. This increase is further supported by the commencement of new units at the Venture Global's 3.2-bcfd Plaquemines LNG facility in Louisiana. On another note, meteorologists are forecasting above-average temperatures across the contiguous United States through April 9, which is anticipated to decrease immediate demand and allow utilities to bolster storage reserves. Analysts indicate that gas inventories are likely to experience a rise in March, a trend not observed since 2012. Moreover, the average gas production in the Lower 48 states has reached 106.0 bcfd for March, marking an increase from February's record level of 105.1 bcfd.