NEW YORK: US natural gas futures edged up to a fresh four-week high on Thursday, following a rise in global energy prices due to the Iran war and as colder weather boosted heating demand by more than previously expected this week.
Front-month gas futures for April delivery on the New York Mercantile Exchange rose 2.1 cents, or 0.7percent, to USD2.230 per million British thermal units (mmBtu), putting the contract on track for its highest close since February 13 for a second day in a row.
That small price increase came despite a federal storage report expected to show energy firms pulled less gas out of storage than usual to heat homes and businesses during mild weather last week.
Energy analysts forecast energy firms pulled 43 billion cubic feet (bcf) of gas out of storage during the week ended March 6.
That withdrawal compares with declines of 64 bcf during the same week last year and a five-year (2021-2025) average decrease of 64 bcf for the period.
In the US cash market, average prices at the Waha Hub in West Texas remained in negative territory for a record 25 days in a row as pipeline constraints trapped gas in the Permian, the nation’s biggest oil-producing shale basin, prompting some analysts to project some energy firms could start reducing gas production.
Gas output in the Permian has hit record highs every year since around 2013, according to EIA data going back to 2009, reaching 27.7 bcfd in 2025. Output in the basin has climbed by 12percent a year on average over the past five years (2021-2025).
Comments
Comments are closed for this article.