• Sign up for the Daily Digest E-mail
  • Facebook
  • X
  • LinkedIn

BOE Report

Sign up
  • Home
  • StackDX Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

U.S. natgas futures slide over 6% on milder weather, higher output

December 7, 202012:27 PM Reuters0 Comments

U.S. natural gas futures dropped more than 6% to a two-month low on Monday, weighed down by forecasts for warmer-than-usual weather that could result in lower heating demand over the next two weeks amid steady rise in production.

Front-month gas futures for January delivery fell 17.5 cents, or 6.8%, to $2.400 per million British thermal units by 2:14 p.m. EST (1914 GMT), after touching its lowest since Oct. 2 at $2.381 earlier in the session.

“The weather outlook for the rest of December is forecasted to be above normal and there is very little buy-side interest in the market,” said Robert DiDona of Energy Ventures Analysis, adding “the other major bearish market driver is total net supply.”

“When you combine the warmer than normal weather outlook for the rest of December, resilient production estimates and elevated storage levels you find little room for upside for the next two weeks which results in little to no bid-side interest from market participant.”

Data provider Refinitiv estimated 321 heating degree days (HDDs) over the next two weeks in the Lower 48 U.S. states, well below the 30-year average of 422. HDDs measure the number of degrees a day’s average temperature is below 65 degrees Fahrenheit (18 degrees Celsius). The measure is used to estimate demand to heat homes and businesses.

Refinitiv said output in the Lower 48 U.S. states averaged 90.9 billion cubic feet per day (bcfd) so far in December. That compares with a seven-month high of 91.0 bcfd in November 2020.

“In the absence of some bullish weather forecasts, this market may need to price in some further expansion in the supply surplus that has stretched considerably in recent weeks.” advisory firm Ritterbusch and Associates said in a note.

Despite mild December forecasts, Refinitiv predicted demand, including exports, would rise to an average of 117.8 billion cubic feet per day (bcfd) this week from 113.4 bcfd in the prior week.

The amount of gas flowing to U.S. LNG export plants, meanwhile, rose to an average of 10.4 bcfd so far in December, which would top November’s 9.8-bcfd record.29dk2902l

LNG

Follow BOE Report
  • Facebook
  • X
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Discount on Western Canada Select widens
  • European Commission proposes Russian oil price cap 15% below global price
  • US oil/gas rig count down for 11th week to lowest since 2021, Baker Hughes says
  • Taiwan’s CPC Corp eyes US shale gas assets, sources say
  • Saudi Arabia complying fully with voluntary OPEC+ target, energy ministry says

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contact
    • Report Error
    BOE Network
    © 2025 Stack Technologies Ltd.