US Natural Gas Prices Drop Following EIA Report

Natural gas futures in the US dipped to approximately $1.75 per million British thermal units (MMBtu) after the Energy Information Administration (EIA) released its storage withdrawal report. This report revealed that American utilities had pulled 37 billion cubic feet (bcfd) of natural gas from storage in the past week, slightly less than the anticipated 38 bcfd.

Furthermore, the current storage levels are 38.9% higher than expected for this time of year. Warmer weather conditions and smaller decreases in production also influenced the price reduction. Initially, the decline in production for April was thought to be around 4.1 billion cubic feet per day (bcfd), but this estimate was later adjusted to 2.3 bcfd.

Weather forecasts suggest temperatures will be cooler than usual until April 7, after which a warmer trend is expected to take over until April 19. Despite this, demand for natural gas is projected to rise shortly, driven by increased shipments to liquefied natural gas (LNG) export terminals, particularly those owned by Cheniere Energy in Louisiana and Texas. Nonetheless, the flow to Freeport LNG’s facility remains limited.

US Natural Gas Prices Drop Following EIA Report