11.02.202614:49:52UTC+00US Natgas Prices Little Changed

US natural gas futures were trading near $3.10 per MMBtu, close to their lowest level since January 16, as expectations of milder weather and rising output pressured prices. Forecasts call for predominantly above-normal temperatures across most of the United States through February 26, curbing heating demand following the recent spell of extreme cold.

Production in the Lower 48 states has risen to about 107.5 bcfd so far in February, up from 106.3 bcfd in January, bolstering supply. The late-January Arctic blast prompted a record 360 bcf storage withdrawal, leaving inventories roughly 1% below typical seasonal levels and likely around 6% below normal in early February. Even so, analysts anticipate that relatively mild conditions in the coming weeks will shrink that storage deficit by early March.

LNG export demand remains robust, helping to cushion prices from steeper declines. Flows to the eight major US export terminals are averaging 18.5 bcfd in February, up from 17.8 bcfd in January and matching previous record highs.