Natural gas saw a 5.11% increase and ended up at 168.7 due to several variables that affected market dynamics. A decrease in output combined with more feed gas supplied to the Freeport LNG export facility raised market activity.
Natural gas flow to U.S. LNG export facilities increased significantly, hitting a three-week high. Freeport LNG in Texas drove the increase by bringing in more feeds. Traders were encouraged as the increase in feed gas suggested a possible comeback from previous disruptions.
In addition, the U.S. Energy Information Administration (EIA) announced a bullish injection that exceeded projections, totaling 92 billion cubic feet (bcf) into storage. On the other hand, the average petrol output in the Lower 48 U.S. states decreased from 100.8 bcfd in March to 96.8 bcfd in April.
This decline is indicative of larger industry patterns, with U.S. gas production expected to fall by roughly 10% in 2024 as a result of operational changes made by energy companies such as EQT and Chesapeake Energy in reaction to lower pricing earlier in the year.
