US Natgas Prices Rise from 7-Week Low
US natural gas futures rebounded to $4.1/MMBtu from a seven-week low of $3.89 on December 16, supported by near-record LNG export flows. Average deliveries to the eight major US LNG plants rose to 18.5 bcfd so far in December, surpassing November’s record, and net exports are expected to continue growing long-term. However, slightly warmer temperatures this winter could potentially lower domestic natural gas and electricity demand. Nevertheless, winter demand is forecasted to exceed production, with withdrawals from storage meeting the shortfall. Inventories began the season above the five-year average, slightly below last winter, and are expected to remain robust. At the same time, production hovers at a record high.