FX.co ★ US Natural Gas Rebounds

U.S. natural gas futures experienced a rebound, reaching $3.9 per MMBtu, closely approaching the recent high of $4 observed on October 27th. This increase was driven by a robust outlook for Liquefied Natural Gas (LNG) exports to Europe and Asia, counterbalancing the elevated levels of domestic production and storage. Recent statistics indicated that the average daily flow of gas to the eight major U.S. LNG export facilities reached 16.5 billion cubic feet in October, surpassing the 15.7 billion cubic feet per day recorded in September and setting a record as the month concluded. This heightened LNG flow corresponded with increased demand from Europe, as the gradual disengagement from Russian gas coincided with decreasing reserves in gas trading hubs. Meanwhile, the U.S. Presidential administration has been advocating for commitments to U.S. energy imports among Asian nations involved in trade negotiations. Despite this, domestic production remained high at 107 billion cubic feet per day throughout October. Additionally, national storage levels in the Lower 48 states rose by 74 billion cubic feet for the week ending October 27th, exceeding expectations of a 71 billion cubic feet increase.