Record production levels and forecasts of mild weather that are expected to reduce heating demand in early April led natural gas prices to fall -0.29% to 344.2. Gas storage levels are still 8% below seasonal norms, including inventory drawdowns due to severe cold in January. According to LSEG figures, average gas production in the Lower 48 U.S. states rose to 105.9 billion cubic feet per day (bcfd) in March, up from a record 105.1 bcfd set in February.
Demand, including exports, is forecast to increase from 106.8 bcfd this week to 108.0 bcfd next week, following two weeks of declines to 106.1 bcfd. Specifically, in terms of storage, U.S. utilities added 9 billion cubic feet of gas in the week ended March 14, 2025, far exceeding the 3 billion cubic feet the market had expected. This is the first increase in savings since November 2024. Supply remains constrained as savings levels are still 10% below the five-year average and 26.8% below the same time last year.
