FX.co ★ Natural Gas Prices Fall Further to 5-Month Lows

U.S. natural gas futures have declined further to $2.9 per MMBtu, marking a five-month low. This trend mirrors the drop in gas prices in key markets across Europe and Asia, driven by abundant supply and uncertain demand amidst macroeconomic challenges. Recent data indicates that domestic gas production in the Lower 48 states has reached a record high of 106.6 billion cubic feet per day for April. Concurrently, warmer-than-normal temperatures, expected to persist until early May, are decreasing the demand for gas-powered heating as northern states transition out of the winter season. Recent figures from the Energy Information Administration (EIA) reveal that gas storage levels increased by 88 billion cubic feet last week, surpassing the anticipated 65 billion cubic feet and marking the largest rise in the current storage buildup season. Meanwhile, economic challenges in China, stemming from the ongoing trade conflict with the U.S., have led to a 20% drop in LNG imports compared to the previous month. Additionally, lower coal prices have prompted India to reduce its LNG consumption.