NEW YORK: US natural gas futures edged up about 1 percent on Wednesday on forecasts for more demand over the next two weeks than previously expected and near-record gas flows to liquefied natural gas (LNG) export plants.
Limiting those price gains were forecasts for milder weather over the next two weeks than previously expected, near-record output, ample amounts of gas in storage and a reduction in prices around the world.
Front-month gas futures for January delivery on the New York Mercantile Exchange rose 6.3 cents, or 1.4 percent, to USD4.637 per million British thermal units (mmBtu). On Tuesday, the contract closed at its lowest since November 26. In the cash market, average prices at the Waha Hub in the Permian shale basin in West Texas fell into negative territory for the first time since mid-November as pipeline constraints trapped gas in the nation’s biggest oil-producing basin.
It was the 32nd time Waha prices traded below zero this year and compares with an average of USD1.26 per mmBtu so far in 2025, 77 cents in 2024, and USD2.91 over the previous five years (2019-2023).
Waha first averaged below zero in 2019. It did so 17 times in 2019, six times in 2020, once in 2023, and a record 49 times in 2024.
Financial firm LSEG said average gas output in the Lower 48 states held around 109.6 billion cubic feet per day (bcfd) so far in December, the same as November’s monthly record high.
On a daily basis, however, output was on track to fall to a three-week low of around 108.9 bcfd on Wednesday, putting it down about 2.4 bcfd since hitting a daily record high of 111.3 bcfd on November 28. Record output has allowed energy companies to stockpile more gas than usual, leaving the amount of fuel in storage at about 5 percent above normal for this time of year.
Meteorologists forecast weather across the country would remain mostly warmer than normal through December 25, reducing the amount of gas needed to heat homes and businesses.
LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 145.3 bcfd this week to 144.8 bcfd next week.
Comments
Comments are closed for this article.