US Natural Gas Prices Rise Over 3% Supported by LNG Exports

US natural gas prices rose by over 3% during yesterday's trading, trading above $4 per million British thermal units (MMBtu), marking a technical rebound from seven-week lows, supported by strengthened LNG exports and a resurgence in buying interest following a wave of selling pressure.

This increase was driven by profit-taking from short positions and improved gas flows to US export facilities. Market data indicated that the average gas deliveries to eight major LNG export facilities reached approximately 18.6 billion cubic feet per day since early December, surpassing the record monthly average of 18.2 billion cubic feet per day recorded in November.

Reports indicate that the Freeport LNG facility in Texas has begun receiving larger volumes of gas, suggesting the return of one of its three liquefaction trains to service after a previous outage, providing additional short-term support for prices.

Despite this improvement, upward prospects remain limited as weather forecasts across the US indicate above-seasonal temperatures approaching the Christmas holiday, which may reduce heating demand and limit the sustainability of gains.

Meanwhile, supply abundance continues to pressure the market, with LSEG estimating that natural gas production in the contiguous US stood at approximately 109.7 billion cubic feet per day so far in December, close to the record numbers recorded in November, alongside relatively comfortable storage levels.

This performance reflects a cautious balance in the US natural gas market, between strong external demand through LNG exports on one hand and structural pressures from mild weather and record production on the other, keeping price movements susceptible to volatility in the upcoming period.