Natural Gas Futures Climb on Record LNG Export Flows

LNG Export Dominance

The United States is currently the world's largest LNG exporter, and flows to its major export terminals have reached 18.6 billion cubic feet per day this month. This surge in export demand is providing a critical outlet for record US production, which reached a monthly high in November. Even as domestic heating demand remains low, the ability to ship fuel to Europe and Asia is keeping prices well above last year's lows.

Weather and Storage Outlook

Meteorologists continue to forecast mostly warmer-than-normal weather through the end of the year, which is keeping home heating demand lower than usual. However, a slight dip in output and the return to service of key liquefaction trains at plants like Freeport LNG have helped tighten the immediate balance. Current storage levels are roughly 1% above normal, providing a comfortable cushion for the rest of the winter.