Natural Gas Prices Fall to Three Month Lows as Mild Weather Eviscerates Demand

Storage Satiation and Production

The natural gas market is currently awash in supply. With domestic production hitting records and storage levels 4% above the seasonal norm, the market is finding little reason to hold onto the winter price premium, resulting in a rapid liquidation of long positions.

LNG Export Pull

The only major support factor is record LNG feedgas demand. However, the 'LNG wave' is viewed as a long-term stabilizer rather than an immediate driver in a mild winter scenario, with Henry Hub prices expected to average just $3.46 for the year.