U.S. Natural Gas Prices Are Down, Supplies Are Up

published 12 December 2023

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There is good news for natural gas users: supplies of gas in storage are ample as winter begins, both in the U.S. and Europe. Mild weather last winter in much of the Northern Hemisphere kept gas inventories from falling too much, even as Europe weaned itself off imported Russian gas.

Now, Europe’s facilities for storing gas are about full and U.S. stockpiles are a bit above average. Also, increases in global capacity to export liquefied natural gas should keep markets relatively well supplied, mitigating potential shortfalls. Still, severe cold weather in Europe, the U.S. or Asia could cause prices to spike, both here and abroad.

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For now, U.S. gas prices are down from last year. Wholesale gas prices averaged about 17% lower in Oct. 2023 than in Oct. 2022. Gas futures prices are holding below $3 per million British thermal units, vs. over $5 one year ago. U.S. gas production keeps hitting new highs — ditto for U.S. gas exports.

In the first half of this year, the U.S. served as the largest exporter of LNG, and projections from the Department of Energy show LNG sales rising 10% this winter.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

Jim joined Kiplinger in December 2010, covering energy and commodities markets, autos, environment and sports business for The Kiplinger Letter. He is now the managing editor of The Kiplinger Letter and The Kiplinger Tax Letter. He also frequently appears on radio and podcasts to discuss the outlook for gasoline prices and new car technologies. Prior to joining Kiplinger, he covered federal grant funding and congressional appropriations for Thompson Publishing Group, writing for a range of print and online publications. He holds a BA in history from the University of Rochester.