US Natural Gas Dips With Warmer Weather Forecast for Next Week

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US natural gas futures dropped to the lowest since late October amid forecasts for warmer temperatures next week, which is likely to reduce demand for the fuel.

  • Futures for February delivery declined as much as 5.9% to $3.404/mmbtu in early Asian trading on Monday
  • The contract was at $3.470/mmbtu as of 9:03 a.m. in Singapore

Weather:

  • Large parts of western US will see warmer-than-normal temperatures from Jan. 12-18, according to an outlook from NOAA
  • See WHUT for a map of latest 6-10 day weather forecast: NOAA

Daily BNEF Gas Data:

  • Lower-48 dry gas production on Sunday ~110.6 bcf/day, or +6% y/y
  • Lower-48 total gas demand on Sunday ~99.5 bcf/day, or -6.7% y/y
  • Dry gas exports to Mexico on Sunday ~3.8 bcf/day, or -33% w/w
  • Estimated gas flows to LNG export terminals on Sunday ~20 bcf/day, or +3% w/w

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