US Natural Gas Futures Increase Amid Cold Snap

In the US, natural gas futures have slightly increased to over $1.7 per million British thermal units (MMBtu) after experiencing an 8% drop last week. This rise is influenced by the general uplift in the energy market and the forecast of chillier weather from March 19 to 26. Meanwhile, repair work is ongoing at the Freeport LNG terminal in Texas, resulting in reduced gas flows that are expected to last until April.

Furthermore, CNX Resources is scaling back on completing wells and producing gas due to the low prices, leading to a 6% decrease in US gas production over the last month. Big players like EQT and Chesapeake Energy are also intentionally reducing their production to adapt to the current market scenario.

The US Energy Information Administration (EIA) predicts a slight decrease in the country’s natural gas production through the end of the year, influenced by these lower prices. Despite this, US gas storage levels are still 37.1% above the norm for this season, even after a higher-than-anticipated withdrawal last week.

U.S Natural Gas Analysis 4-Hour Chart