Natural Gas Prices Plummet as Record Output and Mild Weather Forecast Weigh on Market
U.S. natural gas prices hit a two-week low due to record-high production and unseasonably mild weather conditions. The market is bearish, with prices challenging the $3 per mmBtu threshold. Record gas output and fluctuating demand driven by weather patterns are key factors affecting prices. Storage levels are above the five-year average, and exports to Mexico have declined while flows to U.S. LNG export plants have increased. The market sentiment is cautiously bearish, with expectations of rising prices in the coming years due to soaring LNG export demand. Traders are closely monitoring weather forecasts, storage levels, and the EIA's weekly gas storage report for market direction.
