Natural Gas Stabilizes Near Four Dollars After Sharp December Selloff

Weather vs. Storage

Milder-than-expected weather in late December has reduced domestic heating draws, allowing storage to remain roughly 4% above the five-year average. However, traders are keeping a close watch on January forecasts, as any sustained Arctic blast could quickly deplete the current inventory cushion.

LNG Export Floor

The structural support for US natural gas continues to be LNG exports. With terminal feedgas demand reaching 18.6 Bcf/d, the US is solidified as a global energy provider. This export 'pull' is providing a firm floor near $3.80, preventing the kind of price collapses seen in previous years of high domestic supply.