FX.co ★ US Natgas Prices Rise to 1-Week High, Up 15% in Q1

U.S. natural gas futures have climbed to $4.2 per MMBtu, marking the highest level in over a week. This increase is attributed to record flows to LNG export facilities and a decline in daily production rates. In March, gas exports to the nation's eight major LNG plants averaged 15.8 billion cubic feet per day (bcfd), surpassing February's record of 15.6 bcfd, largely due to new units at the Plaquemines LNG plant in Louisiana commencing operations. Concurrently, daily production fell to a one-week low of 105.2 bcfd. Nonetheless, overall U.S. gas production for March increased to 106.0 bcfd, up from February’s 105.1 bcfd. Forecasts of mild weather in coming weeks are expected to keep demand subdued, enabling utilities to replenish gas storage levels. This could result in the first increase in stockpiles for March since 2012. Despite this potential uptick in inventories, natural gas prices have risen by over 15% in the first quarter, with stockpiles about 5% below average due to significant withdrawals during the cold winter months.