US Natgas Prices Fall to 2-Week Low

US natural gas futures fell below $3.8/MMBtu on Monday, the lowest in two weeks, pressured by record output and forecasts for milder weather.

Warmer conditions through mid-March are expected to reduce heating demand, allowing utilities to withdraw less gas from storage.

Also, average gas production in the Lower 48 states rose to a fresh record of 104.7 bcfd in February, up from 102.7 bcfd in January, when cold weather temporarily reduced output.

Meanwhile, LNG exports remain strong, averaging 15.6 bcfd and nearing record levels.

Increased flows to Venture Global’s Plaquemines LNG plant, which reached 1.8 bcfd last week, contributed to the rise.

Storage levels remain about 12% below the five-year average due to earlier extreme cold