17.12.202517:56:39UTC+00Natural Gas Prices Rise 3%

U.S. natural gas futures rose by more than 3%, exceeding $4 per MMBtu. This surge marks a recovery from seven-week lows, as traders capitalized on profits and observed strengthened LNG (Liquefied Natural Gas) export flows. Current average gas deliveries to the eight major U.S. LNG export facilities have increased to 18.6 billion cubic feet per day (Bcf/d) this month, surpassing November's record of 18.2 Bcf/d. In a related development, the Freeport LNG export terminal in Texas is poised to intake higher volumes, indicating that one of its three liquefaction trains has resumed operations after a temporary shutdown the previous day. However, this upward momentum might be short-lived, as weather forecasts indicate above-average temperatures across much of the U.S. leading up to Christmas, which could reduce heating demand. Concurrently, record-high production levels and abundant storage supplies continue to exert downward pressure on prices. LSEG's estimates indicate that natural gas output from the Lower 48 states is holding steady at around 109.7 Bcf/d in December, consistent with the record levels observed in November.