FX.co ★ US Natgas Prices Fall to Over 3-Week Low

U.S. natural gas futures have declined to approximately $3.90 per MMBtu, marking the lowest level seen in over three weeks. This downturn is influenced by historically high production levels and predictions of milder weather, which is expected to lead to decreased demand over the upcoming fortnight. As of March, gas production in the Lower 48 states has reached 106.0 billion cubic feet per day (bcfd), exceeding the previous record of 105.1 bcfd set in February. The anticipated warmer-than-usual temperatures through April 8 are likely to reduce heating needs, enabling utilities to store more gas. Analysts indicate that gas reserves might increase in March, which would be the first rise for the month since 2012 and only the second ever recorded. Concurrently, LNG exports maintain their robustness, with gas deliveries to the eight key U.S. export terminals averaging 15.8 bcfd in March, an uptick from February’s record of 15.6 bcfd. This growth is propelled by the gradual commissioning of new facilities at Venture Global's 3.2-bcfd Plaquemines LNG plant in Louisiana.