US natural gas futures have moved to their highest level since early 2022, closing November with a jump of more than 15% and pushing toward the US$4.85/MMBtu mark. This is the result of both seasonal demand and a major step‑change in exports. LNG shipments surged last month, with some estimates pointing to a 40% year-on-year increase, pulling more US supply into the global market just as domestic heating demand begins to climb.
Storage levels, while still within historical norms, are drawing down faster than forecast. The past two weeks have seen net withdrawals, a clear sign that consumption is overtaking supply earlier than expected. At the same time, production remains high, but the pace of growth is not matching the speed of demand from both home heating and international buyers.
LNG has added a new layer of structural demand to the US gas market, particularly as Europe and Asia continue to seek long-term alternatives to Russian supply. This demand is now showing up in the futures curve, where price strength is holding even in forward contracts.
Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.
