US natural gas futures fell more than 2.5% to $3.71 per MMBtu as warmer weather forecasts and the return of some frozen wells eased supply concerns. Outlooks from the National Oceanic and Atmospheric Administration show temperatures turning milder from the first week of February, reducing expected heating demand. Output in the Lower 48 was on track to rise to about 93.5 bcfd after dropping to two-year lows of 92.4-92.5 bcfd over the weekend, when roughly 50 bcfd of production was taken offline by frozen wellheads. LNG feedgas flows are also recovering, set to increase to around 13.7 bcfd after falling to a one-year low of 11.6 bcfd on Monday, reinforcing expectations of improving supply conditions.
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