US natural gas futures rose to nearly $3 per MMBtu following a larger-than-expected storage draw. EIA data showed a withdrawal of 54 billion cubic feet for the week ended March 20, exceeding market expectations of a 44 bcf decline. This compares with a 33 bcf injection in the same week last year and a five-year average draw of 21 bcf.
Storage levels fell to 1.829 trillion cubic feet, leaving inventories about 5.2% above year-ago levels and 0.8% above the five-year seasonal norm. The latest pull is widely expected to mark the final withdrawal of the winter season, as warmer-than-normal temperatures are forecast into early April, curbing heating demand.
In the Middle East, Iran rejected a US-backed ceasefire proposal, though negotiations are reportedly continuing. Despite the geopolitical tensions, US natural gas prices have remained relatively steady, supported by ample domestic inventories and the market’s limited short-term exposure to global gas dynamics.
