FX.co ★ US Natgas Prices Ease from 8-Month High

U.S. natural gas futures dipped to $4.5/MMBtu on Wednesday, after reaching an eight-month peak of $4.565 the previous day. This adjustment comes as traders consider short-term forecasts of mild weather against a backdrop of strong export demand and anticipated colder conditions in early December. Weather models suggest a temporary warm period later this month, followed by a drop in temperatures that could increase heating demand. Liquefied natural gas (LNG) exports remain robust, with flow to the eight major U.S. export facilities reaching an average of 17.8 billion cubic feet per day (bcfd) in November, up from a record 16.7 bcfd in October. This surge is fueled by strong European demand amidst reduced Russian supply. Concurrently, U.S. natural gas production in the Lower 48 states reached a record 109 bcfd in November, contributing to storage levels that are currently 4% above seasonal averages. Meanwhile, the International Energy Agency (IEA) has indicated that global oil and gas demand may continue to rise until 2050, reflecting a moderated approach to the global energy transition.