Natural gas prices have risen by 7.02% to ₹320.2 due to increased global LNG demand and forecasts of colder weather in the US. A cold front is expected halfway through January, leading to an 18 billion cubic feet increase in demand forecasts.
The EIA data shows natural gas storage levels fell by over 100 billion cubic feet for the second consecutive week, signaling a robust start to the withdrawal season. Geopolitical factors, such as the decreasing likelihood of Russian gas supply to Europe through Ukraine, are boosting demand for U.S. LNG exports.
Weather forecasts indicate warmer-than-normal conditions in the Lower 48 states through January 4, before transitioning into cooler weather. Despite these fluctuations, U.S. inventories remain above historical averages, with storage levels standing at 3,622 billion cubic feet after a 125 bcf withdrawal for the week ending December 13.
