Natural gas prices dropped by 0.63% to ₹285.7 due to increased U.S. production and reduced tariff risks. President’s suspension of tariffs on Canada and Mexico reduced import costs, reducing price support.
Average U.S. gas output rose to 106.0 bcfd in February, but daily production dropped to 105.1 bcfd. Weather remains a key driver, with forecasts indicating a shift from warm conditions to colder-than-normal temperatures from February 9-19.
The expected rise in demand has lifted LSEG’s gas consumption forecast from 123.8 bcfd to 132.7 bcfd next week. U.S. utilities withdrew 321 bcf from storage, surpassing expectations of 313 bcf in a week.
The EIA projects record-high gas output and demand in 2025, with dry gas production expected to rise from 103.1 bcfd in 2024 to 104.5 bcfd in 2025 and 107.2 bcfd in 2026.
