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Investing.com -- U.S. natural gas futures saw a rise of about 2% on Wednesday, reaching a one-week high. This increase was driven by record gas flows to liquefied natural gas (LNG) export plants and a further decrease in daily production.
The front-month gas futures for April delivery on the New York Mercantile Exchange experienced an increase of 8.5 cents, or 2.1%, to $4.137 per million British thermal units (mmBtu) at 8:52 a.m. EDT. This puts the contract in line for its highest close since March 11.
Interestingly, this price hike took place in spite of predictions for a decrease in demand over the next two weeks. The weather is expected to stay seasonally mild until early April, which should result in less demand and, in turn, reduce the quantity of gas that utilities will need to withdraw from storage in the upcoming weeks.
However, gas inventories are still about 12% beneath normal levels for this period of the year. This is due to the severe cold weather in January and February, which compelled energy companies to withdraw significant quantities of gas from storage, including record amounts in January.
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