NEW YORK: US natural gas futures edged up about 1% on Tuesday as flows to liquefied natural gas (LNG) export plants remain near record highs.
Front-month gas futures for March delivery on the New York Mercantile Exchange rose 4.8 cents, or 1.2%, to $4.042 per million British thermal units (mmBtu) at 8:01 a.m. EST (1301 GMT).
That small price increase came despite near record output so far this month and forecasts for milder weather and lower heating demand this week than previously expected that should allow utilities to pull less gas out of storage than normal for this time of year.
Traders, however, noted extreme cold earlier this year forced energy firms to pull huge amounts of gas out of storage, including record amounts in January, cutting stockpiles to about 11% below the five-year (2020-2024) usual.
Financial company LSEG said average gas output in the Lower 48 US states rose to 104.5 billion cubic feet per day (bcfd) so far in February from 102.7 bcfd in January, when freezing oil and gas wells and pipes, known as freeze-offs, cut production.
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