US natural gas prices continue to plummet

On January 31, Luft released a report that as of that day, the price of natural gas futures in the United States remained stable near the 21-month low, recording the second largest monthly decline in history. The company said that the price of natural gas in the United States had been depressed for several weeks, and market participants generally believed that the natural gas reserves in the United States were sufficient to meet the winter demand.

According to the data of Luft, as of January 31, the monthly natural gas futures price for delivery in March in the United States remained unchanged at $2.674 per million British thermal units. This is the lowest price since April 2021. In the last week of January 2023, the United States encountered a winter storm, which caused the suspension of oil and gas wells in Texas, Oklahoma, Colorado, North Dakota and Pennsylvania. However, as the average temperature in January is still higher than in previous years, the demand for natural gas in the United States is still lower, and the market is still in a state of oversupply.

Luft expects that the demand for natural gas will continue to decline as the weather warms in February. US natural gas demand will drop from 134.5 billion cubic feet per day in the week from January 29 to February 4 to 128.8 billion cubic feet per day in the week from February 5 to February 11.