US Natural Gas Futures Hit Six-Month High on Record LNG Exports and Winter Demand

U.S. natural gas prices have surged to six-month highs, driven by near-record LNG export flows, a drop in output, and forecasts for increased demand over the coming weeks. December natural gas futures rose about 4%, marking the biggest weekly percentage gain since April 2024, with supply tightening as production in the Lower 48 states decreased slightly after earlier record highs. Despite warmer-than-normal temperatures limiting heating demand, robust LNG exports and rising gas demand have supported prices. Concurrently, Russia's Novatek chairman warned that the EU's plan to phase out Russian gas imports by 2027 could trigger unprecedented global gas price hikes, disproportionately affecting European consumers. EU countries have already experienced significant energy cost increases since sanctions on Moscow began, with some member states opposing the plan due to economic impacts. The contrasting dynamics of strong U.S. production and export growth versus geopolitical supply risks in Europe highlight ongoing volatility in global natural gas markets.