US Natgas Futures Up on Big Storage Draw, Near Record LNG Exports

The U.S. is already producing LNG near full capacity, so no matter how high global gas prices rise, it would not be able to produce much more of the supercooled fuel any time soon.

Reuters

U.S. natural gas futures edged up on March 9 as near-record LNG exports caused utilities to pull more gas from storage last week than expected and on forecasts for more heating demand over the next two weeks.

U.S. LNG exports have been strong because global oil, and gas prices have traded at or near record highs in recent weeks after Russia invaded Ukraine, stoking energy supply concerns. Russia is the world’s second biggest producer of gas behind the United States.

After soaring to an all-time high over $106 per MMBtu on March 7, European gas futures collapsed 30% on March 9 and were down about 10% so far on March 10 as gas supplies stabilized with continued high flows from Russia and massive LNG imports from around the world. That supply stabilization prompted traders to take profits.

Already have an account? Log In

Sign up for FREE access to view this article now!

Unlock Free Access