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2025-10-31 21:57:01
[US Natural Gas Prices Surge to Six-Month High, LNG Export Demand Hits Record High] ⑴ US natural gas futures rose 4% to a six-month high on Friday, with the December contract settling at $4.116 per million British thermal units (MMBtu). ⑵ Prices remained in technically overbought territory for the second consecutive day, the first time in four weeks, with a weekly gain of 25%, the largest weekly increase since April 2024. ⑶ The monthly gain of 25% also marks the largest monthly increase since March, significantly outperforming the crude oil market. ⑷ The crude oil-to-natural gas price ratio fell to 15:1, the lowest since December 2022, well below the reasonable level of 6:1 based on energy equivalents. ⑸ Average flow rates at liquefied natural gas (LNG) export facilities reached a record high of 16.6 billion cubic feet per day in October, with Friday's daily flow rising to 17.9 billion cubic feet per day. ⑹ Natural gas production in the 48 contiguous US states fell to 107 billion cubic feet per day, a decline from the record high of 108 billion cubic feet per day set in August. (7) Despite inventory levels being approximately 4% higher than normal, strong export demand continues to consume excess supply. (8) Weather forecasts indicate that temperatures will generally be above normal until November 15th, and heating demand is expected to be below seasonal norm. (9) Analysts predict that natural gas demand will remain in the range of 108.9-109.8 billion cubic feet per day over the next two weeks, higher than previously expected. (10) The current Henry Hub spot price is $4.08, a significant increase from $2.58 in the same period last year, indicating a fundamental shift in the market's supply and demand dynamics.
