U.S. natural gas prices (NG1:COM) settled -3.6% at $4.833/MMBtu, reversing sharp overnight gains and pulling back from Friday's $5.016 closing price that was the highest in more than a month, as uncertainty over Russia's war with Ukraine gave way to forecasts for warmer weather in the U.S.
European energy prices had skyrocketed earlier, as futures for natural gas on the Dutch TTF reached as high as $115/MMBtu before pulling back to ~$93.
U.S. natural gas prices had started to rally late last week due to rising worries about gas supply shortages in Europe, but the local weather is still a major factor in U.S. markets, and the latest 10-day window showed moderating weather patterns, including above normal temperatures in parts of the Mid-Atlantic and East Coast.
Regardless of any need for more natural gas abroad, "we have limited capacity to export LNG. Once those existing facilities are running full-out to load cargoes, that's it," University of Tulsa's Tom Seng says, even as U.S. liquefied natural gas expansion projects are a top priority as the need becomes more evident.
Cheniere Energy said it has sold out through the 2040s of the planned production from the newest trains at its Sabine Pass and Corpus Christi projects.