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Investing.com - U.S. natural gas prices fell Friday, as traders digest a weaker-than-expected storage report as warmer spring conditions approach.
At 10:25 ET (15:25 GMT), natural gas prices fell 1.6% to $4.232 per million British thermal units, or MMBtu, after earlier this week climbing to its highest levels since December 2022.
This bearish tone stemmed from Thursday’s EIA storage report, which showed a net withdrawal of 80 billion cubic feet, falling short of expectations for a draw of 92-94 billion cubic feet.
The bearish surprise stemmed partly from increased solar energy generation, which reduced gas demand for power generation.
Prices have been at record levels due to the wintery conditions, but forecasts suggest only moderate demand through the weekend, with alternating cold and mild periods across the U.S.
Sentiment has also been hit by U.S. President Donald Trump temporarily suspending levies on most goods incoming from Canada until April 2, reversing a decision days earlier to allow the duties to come into effect because of a perceived lack of action by these countries to help stem the flow of illegal drugs and migrants into the U.S.
Canada is a major supplier of U.S.’s total annual natural gas imports.
Elsewhere, European natural gas prices jumped after U.S. President Donald Trump said on Friday that he is "strongly considering" imposing sanctions on Russia until a ceasefire and peace agreement is reached with Ukraine.`
Russia, one of the world’s biggest energy producers, is subject to wide-ranging sanctions imposed by the United States and partners after its invasion of Ukraine in February 2022.
U.S. sanctions on Russia include measures aimed at limiting its oil and gas revenues, including a cap of $60 per barrel on Russia’s oil exports.