US gas prices soar by 7%

On Monday, natural gas prices on the NYMEX jumped about 7% on stronger-than-expected demand this week and production cuts this month, Report informs.

Over the past four sessions, US gas prices have skyrocketed by about 31%, partly due to increased liquefied natural gas (LNG) exports. Among other reasons for such a sharp rise in prices are forecasts of worsening weather conditions next week.

The partial reopening of the Freeport LNG terminal in Texas facilitated the increase in LNG exports. The terminal had been out of service since June 2022 due to a fire.

Pipeline gas deliveries to the Freeport terminal on Monday could reach 0.8 billion cubic feet, according to Refinitiv Eikon data. At the same time, the terminal can liquefy up to 2.1 billion cubic feet of gas per day.

Freeport says pipeline gas deliveries to the terminal could reach 2.0 billion cubic feet daily in the next few weeks. Some analysts believe the terminal will not reach its full capacity until the end of April.

April natural gas futures on the NYMEX ended Monday's session up 18.3 cents, or 7.2%, at $2.731 per million Btu. Contracts closed at the highest since January 27th.

However, since the beginning of the year, gas prices have fallen by about 39% after rising by 20% in 2022.