Natural Gas Prices Rise 3%
US natural gas futures climbed more than 3% to trade above $4 per MMBtu, rebounding from seven-week lows as traders stepped in to take profits and LNG export flows strengthened. Average gas deliveries to the eight major U.S. LNG export facilities rose to 18.6 Bcf/d so far this month, exceeding November’s record monthly average of 18.2 Bcf/d. Meanwhile, Freeport LNG’s export terminal in Texas was set to take in higher volumes on Wednesday, suggesting that one of its three liquefaction trains has returned to service after shutting down a day earlier. The advance, however, may be short-lived. Weather forecasts across much of the U.S. point to above-average temperatures heading into Christmas, potentially curbing heating demand. At the same time, record-high production and ample storage supplies continue to pressure prices. LSEG estimates Lower-48 natural gas output at around 109.7 Bcf/d so far in December, broadly in line with the record levels seen in November.