US natural gas prices rose above $1.7/MMBtu due to a larger-than-expected storage draw reported by the EIA and increased demand forecasts for the next two weeks. Utilities withdrew 36 bcf of gas from storage, exceeding the 28 bcf draw expected by the market. Despite a 25% drop in prices in Q1 following a mild winter and high output, prices are expected to remain under pressure due to forecasts of mild weather, ample gas in storage, and reduced gas flow to LNG export plants. These factors may lead to record-high US gas consumption in 2024 and the first production cut since 2020, when the pandemic drastically reduced demand. Energy firms like EQT and Chesapeake Energy have already reduced output by about 3% in response, delaying well completions and scaling back drilling activities.
Natural gas decreased 0.58 USD/MMBtu or 24.79% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. 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 March 28 of 2024.
Natural gas decreased 0.58 USD/MMBtu or 24.79% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Natural gas is expected to trade at 1.73 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 1.74 in 12 months time.