Natural Gas Prices Plummet as Mild Weather Models Eviscerate Demand

Storage Satiation and Production Records

The natural gas market is currently awash in supply. With domestic production hitting 106 Bcf/d 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, which continues to hover near 15 Bcf/d. However, until a major Arctic cold snap materializes, natural gas prices are expected to test the $3.00 level in the immediate term.