FX.co ★ US Natgas Prices Join Energy Markets Down

Natural gas futures in the United States declined to $4 per MMBtu on Friday, marking a 1.6% decrease for the week. This downturn was driven by China's recent imposition of a 34% tariff on American goods, raising concerns about a potential global recession and leading to significant drops in both energy and stock markets. China has called for the U.S. to revoke these unilateral tariffs, arguing that they are detrimental to worldwide trade and supply chains. Market participants are carefully monitoring the balance between supply and demand. According to the latest report from the Energy Information Administration (EIA), U.S. gas storage levels are 4.3% below the typical levels, even after three consecutive weeks of increased storage. In March, LNG exports achieved a record high of 15.8 billion cubic feet per day (bcfd), and gas production hit its peak at 106.2 bcfd, although output has begun to decrease in April. Weather predictions indicate that temperatures will remain close to normal through the middle of April.