The bears are out as today’s front month opens at $4.113 US/MM, dropping well over 11¢ over the weekend. This is not just seen in the front month, as far as a year out to January 2027 there are drops over 10¢ across the board. Weather is forecasted to be above average in the lower 48, and alongside record production and ample storage supplies, these factors continue to depress the current price of natural gas thus leading to the bearish sentiment. Prices briefly dipped below $4 US/MM, which is rather shocking given the recent highs of nearly $5.5 US/MM. As of writing, the front month is currently at $4.019 US/MM, showing another drop of nearly 10¢.

Financial firm LSEG reported a record gas output in the lower 48, stating they had reached production levels of 109.7 bcf/d on average for December (so far), up from the monthly record high we saw in November of 109.6 bcf/d. This surplus has allowed energy companies to keep 1% above normal gas in their storage reserves. (AA)