US natural gas futures fell sharply towards $6.2 per million British thermal units, the lowest since April 7th, pressured by rising domestic inventories. Last week, US utilities injected 74 billion cubic feet (bcf) of natural gas into underground storage, according to the EIA, more than median estimates of a 65 bcf injection and well above last year’s 49 bcf addition. The recent explosion at one of the biggest US liquefied natural gas export terminals in Texas is keeping an additional 2 bcf a day of natural gas in the US market despite soaring international demand, easing pressure from domestic prices. Freeport LNG said it doesn't expect the terminal to return to full operations until late 2022, with partial production resuming perhaps in three months. Still, the contract has gained 70% since the start of the year on strong overseas demand, even more so since Europe has been trying to wean off Russian supplies, following the invasion of Ukraine.
Historically, Natural gas reached an all time high of 15.78 in December of 2005. Natural gas - data, forecasts, historical chart - was last updated on June of 2022.
Natural gas is expected to trade at 6.58 USD/MMBtu by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 7.80 in 12 months time.