US Natural Gas Rebounds From Near 5-Month Low

US natural gas futures traded around $3.9 per million British thermal units in the third week of December, after hitting a near five-month low of $3.69 on December 17th, amid a surge in US exports and domestic forecasts for colder weather during the next month.

The EU natural gas prices at record high coupled with low inventories levels and freezing weather prompted large shipments from the US boosting the prices.

Meanwhile, in the United States, temperatures are expected to decline moderately in parts of the US around Christmas, with Refinitiv projecting US natural gas demand to reach 123.7 bcf this week, from 109.7 bcf last week, before easing back to 120.1 bcf next week.

Most of the country is expected to see warmer-than-usual weather through late December, however, preliminary data indicates a cold first week in January, suggesting a possible higher demand for heating.