U.S. natural gas exports fell in May as record production outpaced demand, according to data from the Energy Information Administration (EIA).
The EIA reported that U.S. natural gas exports averaged 12.2 billion cubic feet per day (Bcf/d) in May, down from 12.7 Bcf/d in April. The decline was driven by a number of factors, including:
- Record U.S. natural gas production: U.S. natural gas production reached a record high of 101.4 Bcf/d in May, up from 99.7 Bcf/d in April.
- Lower demand from Europe: European demand for U.S. LNG has declined in recent months as Russia has increased its natural gas exports to Europe.
- Maintenance at LNG export facilities: Several LNG export facilities in the U.S. were offline for maintenance in May.
Despite the decline in exports, U.S. natural gas prices remained relatively stable in May. The Henry Hub spot price averaged $2.27 per million British thermal units (MMBtu) in May, up from $2.18 per MMBtu in April.
The EIA expects U.S. natural gas exports to remain relatively flat in the coming months. The agency forecasts that U.S. natural gas production will continue to increase, while demand from Europe is expected to remain weak.
The decline in U.S. natural gas exports could have implications for global energy markets. The United States is the world's leading exporter of LNG, and the decline in exports could put upward pressure on global natural gas prices.
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