Natural Gas Prices in the US Continue to Weaken
US natural gas futures fell more than 2% to around $4 per MMBtu, extending losses for a third consecutive session and marking the lowest level since late October. Weather forecasts across the US point to above-average temperatures for much of the country ahead of Christmas, which could curb heating demand. At the same time, record production levels and ample storage supplies continue to weigh on prices. LSEG estimates Lower-48 output at around 109.7 Bcf/d so far in December, broadly in line with the record highs set in November. According to the latest EIA data, US utilities withdrew 177 Bcf from underground storage in the week ended December 5, slightly above expectations and representing the first significant draw of the season. Meanwhile, US LNG exports remain robust, with shipments in November reaching a record 10.9 million metric tonnes, around 70% of which were destined for Europe.