Natural Gas Futures
US natural gas prices rose to above $1.8/MMBtu on a continuing decline in output and forecasts for more demand next week than previously expected. Gas output fell to an average of 100.8 billion cubic feet per day (bcfd) in March, down from 104.8 bcfd in February as several energy firms, including EQT and Chesapeake Energy, delayed well completions and cut back on other drilling activities. Prices fell 25% in Q1 after a mild winter with record output allowed utilities to leave significantly more gas in storage than usual for this time of year. Gas stockpiles were about 41% above normal levels for this time of year. Looking ahead, prices are expected to remain under pressure due to forecasts of mild weather, ample gas in storage, and reduced gas flow to LNG export plants. These factors may lead to record-high US gas consumption in 2024 and the first production cut since 2020, when the pandemic drastically reduced demand.