Natural gas dropped on a bigger-than-expected storage build.
Natural Gas yesterday settled down by -1.13% at 183.1 on a bigger-than-expected storage build and forecasts for milder weather and weaker-than-anticipated heating demand. The latest EIA report showed US utilities added 75 bcf of gas into storage last week, more than market projections of a 69 bcf increase, as warmer temperatures kept heating demand low. US gas demand, including exports, is estimated to rise from 95.6 bcfd this week to 96.8 bcfd next week, according to Refinitiv forecast.
Data provider Refinitiv said average gas flows to the seven big U.S. LNG export plants rose to 14.1 billion cubic feet per day (bcfd) so far in April, up from a record 13.2 bcfd in March. The seven big U.S. LNG export plants can turn about 13.8 bcfd of gas into LNG. LNG plants can pull in a little more gas than they can turn into LNG because they use some of the fuel to power equipment used to produce LNG. Refinitiv said average gas output in the U.S. Lower 48 states rose to 100.2 bcfd so far in April, up from 99.7 bcfd in March. Meteorologists projected the weather in the Lower 48 states would remain mostly colder than normal through May 3 before returning to normal from May 4-6.
