Natural gas prices rose 1.14% to ₹355.4 on the back of a decline in natural gas production and cold weather. The severe cold weather in January and February forced energy companies to remove large quantities of gas from storage, which is 12% below the average for this time of year. According to LSEG data, average gas production in the lower 48 states of the US increased to 105.8 bcfd in March from a record 105.1 billion cubic feet per day (bcfd) in February.
But daily production fell to 104.1 bcfd, a three-week low. According to LSEG, average demand (including exports) is expected to increase from 107.4 bcfd this week to 110.5 bcfd next week, higher than previous estimates, while weather forecasts indicate temperatures will approach normal by April 2. In the week ending March 7, U.S. utilities pulled 62 billion cubic feet (bcf) of gas from storage, more than the 50 bcf the market had expected. Total inventories now stand at 1,698 bcf — down 27% from last year and 11.9% below the five-year average.
