US Natgas Prices Rebound Above $4.1

US natural gas futures rose above $4.1/MMBtu, moving closer to a 25-month high hit around $4.4 on February 21, driven by record LNG exports and reduced storage levels.

LNG flows averaged 15.6 bcfd so far in February, up from 14.6 bcfd in January, with a daily record of 16.4 bcfd on Sunday.

This increase was partly due to higher flows to Venture Global’s Plaquemines LNG plant.

Also, cold weather led to record gas withdrawals, leaving stockpiles 11% below the five-year average.

On the production side, output fell to 100.5 bcfd on February 19 due to frozen wells, but rebounded to 104.3 bcfd by February 25 as conditions improved.

Nevertheless, overall February production is near record levels.

Looking ahead, warmer-than-normal weather is expected through March 12, which may ease supply concerns.