US natgas prices jump 10% after US President Trump pauses most tariffs

By Scott DiSavino

April 9 (Reuters) - U.S. natural gas futures jumped about 10% on Wednesday, rising along with Wall Street and other energy prices after U.S. President Donald Trump said he would temporarily lower new tariffs on many countries, even as he raised them further on imports from China.

Gas prices also gained support from a decline in output in recent days, forecasts for more heating demand over the next two weeks than previously expected and record flows to liquefied natural gas (LNG) export plants.

Gas futures NGc1 for May delivery on the New York Mercantile Exchange rose 35.1 cents, or 10.1%, to settle at $3.816 per million British thermal units.

Earlier in the session, prices for gas and other energy futures dropped on worries U.S. tariffs could reduce global economic growth and demand for energy.

Traders said mild weather and low demand last month likely allowed utilities to add gas to storage in March for the first time since 2012 and only the second time ever for that month.

Gas stockpiles remained about 3% below normal levels for this time of year after cold weather in January and February forced energy firms to pull large amounts of gas out of storage, including record amounts in January. EIA/GAS NGAS/POLL

SUPPLY AND DEMAND

Financial firm LSEG said average gas output in the Lower 48 U.S. states fell to 105.9 billion cubic feet per day so far in April, down from a monthly record of 106.2 bcfd in March.

On a daily basis, output was on track to drop by 3.7 bcfd over the past four days to a preliminary six-week low of 103.4 bcfd on Wednesday. Analysts have said preliminary data is often revised later in the day.

Looking forward, analysts noted the roughly 17% drop in U.S. crude CLc1 futures over the past four days to a near four-year low on Tuesday could prompt energy firms to start cutting back on oil drilling. O/R

Any reduction in oil drilling in shale basins like the Permian in Texas and New Mexico and the Bakken in North Dakota could cut gas output associated with that oil production.

Meteorologists projected temperatures in the Lower 48 states would remain mostly near-normal through April 24.

With seasonally mild weather coming, LSEG forecast average gas demand in the Lower 48, including exports, will fall from 109.5 bcfd this week to 101.2 bcfd next week. Those forecasts were higher than LSEG's outlook on Tuesday.

The average amount of gas flowing to the eight big LNG export plants operating in the U.S. rose to 16.0 bcfd so far in April, up from a monthly record high of 15.8 bcfd in March.

On a daily basis, LNG feedgas was on track to reach 17.1 bcfd on Wednesday, up from a daily record of 16.8 bcfd on Tuesday, with gas flows to Venture Global's VG.N 3.2-bcfd Plaquemines export plant under construction in Louisiana on track to hit an all-time high of 2.4 bcfd.

The U.S. became the world's biggest LNG supplier in 2023, surpassing Australia and Qatar, as surging global prices fed demand for more exports due in part to supply disruptions and sanctions linked to Russia's 2022 invasion of Ukraine.

Gas was trading near a six-month low of around $11 per mmBtu at the Dutch Title Transfer Facility (TTF) TRNLTTFMc1 benchmark in Europe and a seven-month low of around $13 at the Japan Korea Marker (JKM) JKMc1 benchmark in Asia. NG/EU

For gas data on the LSEG terminal type ENERGY in the search bar and then go to the GAS drop down and the NORTH AMERICA drop down.

For Interactive Map, type 'Interactive Map' in the box at upper left of the LSEG terminal

For graphics on Baker Hughes rig counts, see: http://graphics.thomsonreuters.com/15/rigcount/index.html

For next-day SNL U.S. gas prices, see: 0#SNL-NG

For next-day SNL U.S. power prices, see: 0#SNL-PWR

For U.S. natgas price and storage polls, see: NGAS/POLL

For U.S. nuclear power outages, see: NUKE/

For U.S. Northwest hydro power report, see: NWRFC

For U.S./Canada natural gas rig count vs Henry Hub futures price, see: http://tmsnrt.rs/2eT9k44

For the U.S. natural gas speed guide, see: USGAS

For the U.S. power speed guide, see: USPOWER

To determine CFTC managed money net position add (NYMEX Henry Hub options and futures combined 3023651MNET) plus (ICE Henry Hub options and futures combined 3023391MNET divided by four) plus (NYMEX Henry Hub swaps options and futures combined 303565BMNET divided by four) plus (NYMEX Henry Hub penultimate gas swaps 303565CMNET divided by four)

NYMEX Henry Hub options and futures combined 0#3CFTC023651

NYMEX Henry Hub futures only 0#1CFTC023651

ICE Henry Hub options and futures combined 0#3CFTC023391

NYMEX Henry Hub swaps options and futures combined 0#3CFTC03565B

NYMEX Henry Hub Penultimate gas swaps 0#3CFTC03565C