Natural gas prices fell by 3.31% to 373.9, driven by near-record output and mild weather forecasts. However, the downside was mitigated by record LNG export flows and concerns over potential reductions in gas exports from Canada following US tariffs on Canada and Mexico.
Lower 48 US states saw production increase to 105.5 bcfd in March, but daily output dropped to a one-week low of 104.7 bcfd. Storage levels remain a key factor, with US inventories projected to end the winter withdrawal season at a three-year low of 1.760 tcf on March 31, 2025.
U.S. utilities withdrew 80 bcf from storage in the week ending February 28, falling short of market expectations. The EIA projects U.S. dry gas production to rise from 103.1 bcfd in 2024 to 104.6 bcfd in 2025, with LNG exports expected to reach 14.0 bcfd in 2025.
