US natural gas prices hit 3-year high

Natural gas prices in the US retreated on Thursday after briefly hitting a three-year high earlier in the day, driven by falling temperatures in parts of the country.

US natural gas futures for January delivery fell 0.46% to $4.972 per million British thermal units as of 7:21 p.m. Makkah time, after touching $5.046—their highest level since December 2022.

The earlier rise came as colder weather hit the Midwest and East Coast, boosting demand for gas used in heating.

However, prices reversed lower after data from the Energy Information Administration showed a 12 billion cubic-foot decline in gas inventories last week, compared with expectations for an 18 billion cubic-foot drop.

The data suggests that natural gas demand was weaker than expected, especially since last week’s storage levels were 5.1% above the five-year average.