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US Natgas Touches Multi-Year Lows Ahead Of April Futures Expiry

NATURAL GAS

US natural gas touched a 2.5-year low earlier today amid a milder outlook that signals lower gas demand but prices moved up in a choppy session ahead of the April contract expiry this afternoon.

  • oUS Natgas APR 23 down -1.5% at 2$/mmbtu
  • The Henry Hub April price fell to $1.944/mmbtu this morning, the lowest intraday price since September 20202.
  • Since then, prices have modestly rebounded as the April contract is set to expire on Wednesday, which often leads to choppy trading during the expiry period.
  • Latest weather forecasts suggest weather above the seasonal norms, weighing on demand.
  • Lower 48 dry gas production has held steady at around 100.4bcf/d on Wednesday, up by 5.9% year on year.
  • Estimated gas flows to LNG export terminals on Wednesday are at around 14.2 bcf/day. Supply to Freeport picked up to around 1.69bcf/d and remained below the full operational capacity of around 2.1bcf/d.

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