Due to expectations of increased demand over the next two weeks, natural gas saw a 4.02% increase in price yesterday, finishing at 186.3. The primary cause of this increase in demand was the increased feed gas to LNG export facilities, particularly with the reopening of Freeport LNG in Texas.
A persistent drop in output has also helped to sustain prices; so far in May, the Lower 48 U.S. states’ petrol output has dropped from 98.1 bcfd in April to 96.9 bcfd. Forecasters anticipated a change in the Lower 48 states’ weather patterns, with May 6–9 seeing warmer-than-normal temperatures, May 10–17 seeing near-normal temperatures, and May 18–21 seeing warmer-than-normal temperatures again.
Gas demand, including exports, is predicted by LSEG to decline from 93.4 bcfd this week to 91.0 bcfd the following week notwithstanding this prediction. Notably, these projections exceeded LSEG’s prior prediction, suggesting that the market may be feeling confident.
Gas flows to major U.S. LNG export facilities increased as Freeport gradually resumed operations, from an average of 11.9 bcfd in April to 12.4 bcfd thus far in May. The upsurge in activity follows a record-breaking month in December 2023, indicating a possible comeback for LNG shipments.
