Natural gas prices jumped last week, hitting a 13-week high due to rising coal costs and soaring LNG shipments. President Biden has already committed to providing an extra 15 billion cubic meters of natural gas to the EU this year in the form of LNG exports. The spot gas prices were strengthened as cold, snowy conditions in the west were heading toward the east. NGI's Spot Gas National Average climbed to $6.525, up 16.0%.
As weather models turned a little warmer for next week, in addition to the bullish backdrop, Liquefied natural gas (LNG) feed gas deliveries recovered midweek. Moreover, according to EIA, U.S. dry natural gas production is projected to reach 97.5 Bcf/d by December 2022, a new record high.
