-- US natural gas prices extended losses in after-hours trade on Tuesday as feedgas volumes to LNG export terminals fell to their lowest level in more than three months, backing up supplies into an already amply supplied market.
Both the front-month Henry Hub contract and the continuous contract slipped 3.00% to $2.781 per million British thermal units.
BNEF data showed LNG feedgas flows to US Gulf Coast export facilities declined to 17.7 billion cubic feet, the lowest since late January, due to seasonal maintenance production slowdowns at the Cameron, Calcasieu Pass, and Corpus Christi LNG facilities, Aegis Hedging said.
US natural gas prices have been under pressure due to a mix of strong supply and weakening shoulder-season demand.
On Apr. 17, prices fell to a 1.5-year low amid robust storage levels, highlighting the oversupplied market. As of Apr. 24, inventories stood 7.7% above the five-year seasonal average, reinforcing concerns about excess supply.
At the same time, LNG feedgas demand has eased, leaving more gas in the domestic system and adding further downward pressure on prices.
Despite this weakness, production remains relatively high. BNEF estimates output at 110.7 Bcf/d, about 3.4% higher than a year earlier, even as lower prices have already led some producers to begin cutting back, according to Trading Economics.
Overall, the combination of elevated inventories, strong production, and softer exports continues to weigh on the domestic market.