2023-10-31 11:58
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1 min. read
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US natural gas futures surged to a seven-month high above $4.1 perโ MMBtu today, driven by a combination of increased domestic heating demand adn robust liquefied natural gas (LNG) exports.
The โpriceโ increase signals โฃpotential higher energy costs for โconsumers this โฃwinter and reflects the growing role of the US as a key energy supplierโค to global markets, especially Europeโข and โAsia. This comes as Europe seeks alternatives to Russian gas and asian nations negotiate trade deals involving US energy resources. The market is closely watching weather patterns and storage levels as the winter heating season approaches.
Demand for gas isโฃ being โขbolstered by forecasts of colder weather across the US. Simultaneously, LNGโค export volumes are hitting record levels. Theโค average daily flow ofโค natural gas to the eight major US LNG โexport facilities โreachedโค 16.6 โbillion cubic feet in October, exceeding the 15.7 bcfd recorded theโค previous month.
Europe’s reduced reliance โon Russian gas, coupled with dwindling gas reserves in European trading hubs, is fueling demand for US LNG. The US Presidential administration is also actively encouragingโค Asian countries to commit to โขUS energy importsโค asโข part of ongoing trade negotiations.
Despite the rising prices and increased exports, USโ natural gas production remainsโฃ strong, โcurrently at 107 billion cubicโฃ feetโข per day in October. Moreover, national gas storage levelsโข in the Lower 48โ states increased by 74โฃ billion cubic feet during the week ending October 27th,โ exceeding market expectations โฃof a 71 bcf build.
