US natural gas prices lost about 6% and fell to a nine-week low amid record production over the past weekend and forecasts of weaker demand next week. Accordion to LSEG, the Lower 48 states produced 106.3 billion cubic feet of gas per day this month.
An increase of the indicator value may contribute to the fall in quotes of NG.
Saudi Aramco recently reported on the discovery of 14 new oil and gas fields which will allow Saudi Arabia to raise its oil production by 8,000 barrels per day (bpd) and increase its gas output by 80 million cubic feet per day.
According to the International Energy Agency (IEA), the growth of AI data centers will double electricity demand by 2030. Consequently, the need for coal and gas will also increase. In the US, natural gas is used in 40% of data centers, and its demand will rise as these facilities proliferate.
Egypt's unusually mild start to summer this year will reduce demand for liquefied natural gas (LNG), Bloomberg reports. Lower consumption of gas in Egypt will ease pressure on the global LNG market.
On Tuesday, it was reported that the United States has canceled licenses given earlier for the development of two offshore gas projects between Trinidad and Tobago and Venezuela. Companies involved in these projects are required to shut down operations by May 27, Reuters informs.
Asian nations, including South Korea, Indonesia, Thailand, and Japan, are increasing imports of US liquefied natural gas (LNG). The move aims to reduce their trade surpluses with America and mitigate the impact of reciprocal tariffs imposed by the Trump administration.
As US President Donald Trump insists Europe increase its spending on American gas by $350 billion, the European Union plans to lower its gas storage targets from 90% to 80% to curb expenses. Meeting this US demand could potentially resolve tariff disputes between the transatlantic allies.
The trade standoff between the world’s two largest economies is complicating things for Chinese natural gas importers, Reuters says. At first, their task was to resell the fuel to Europe, but now they must find alternative markets.
The United States has reported unprecedented natural gas consumption for both winter and summer of 2024. According to the Energy Information Administration (EIA), this surge in demand occurred alongside strong output, despite a decline in drilling activity.
Shell anticipates lower-than-expected gas production in the first quarter 2025 due to unplanned maintenance at its Australian facilities. Shell forecasts integrated gas production of 910,000–950,000 barrels of oil equivalent.
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