U.S. natural gas futures declined sharply despite a 167 billion cubic feet storage withdrawal reported by the Energy Information Administration. The front-month futures contract fell over 3% for the week, settling just below $4 per million British thermal units, influenced by milder weather forecasts that are expected to last into early January.
As of December, U.S. natural gas production averages approximately 110 billion cubic feet per day, contributing to supply stability despite high withdrawal numbers. Traders are cautious about potential late-winter shortages, viewing cold-weather price spikes as opportunities to sell rather than signals of a sustained rally.
Investors are advised to focus on companies like Coterra Energy, EQT Corporation, and Excelerate Energy, which are positioned to benefit from long-term demand for natural gas linked to infrastructure and exports.
