Natural gas prices fell by 3.39% to settle at ₹273.6, driven by easing heating demand despite colder-than-normal weather. Weather forecasts suggest a shift from colder-than-normal to near-normal levels from December 4-12, reducing the pressure on utilities to draw heavily from storage.
Production levels in the U.S. remain robust, with an average of 101.4 billion cubic feet per day in November. The Energy Information Administration projects a decline in natural gas production to 103.3 bcfd in 2024, with a rebound to 104.5 bcfd in 2025.
Demand, including liquefied natural gas (LNG) exports, is forecast to hit record highs, rising to 90.0 bcfd in 2024. U.S. utilities reported withdrawing 2 billion cubic feet of natural gas from storage, bringing inventories to 3,967 billion cubic feet, 3.5% above last year and 7.2% above the five-year average.
