Natural gas prices experienced a notable increase of 4.92%, closing at Rs 400.9, bolstered by strong export demand and unprecedented operational levels at U.S. LNG facilities. Flows to the eight major LNG terminals have averaged approximately 17.4 billion cubic feet per day (bcfd) this month, exceeding the record levels set in October. The increase occurs as Europe persistently seeks to reduce its dependence on Russian gas, while buyers in Asia are finalizing long-term supply agreements with the United States.

On the supply side, U.S. output remains elevated at approximately 108.7 bcfd, contributing to storage levels that are roughly 4% above the seasonal average. The U.S. Energy Information Administration projects that both natural gas supply and demand will attain unprecedented levels in 2025 and 2026, propelled by the growth of energy-intensive data centres and increasing LNG exports.

The EIA anticipates that dry gas production will increase to 107.1 bcfd in 2025 and 107.4 bcfd in 2026, whereas total consumption may near 116 bcfd. U.S. LNG exports are projected to increase to 14.7 bcfd in 2025 and 16.3 bcfd in 2026, up from a record 11.9 bcfd in 2024.

In the week ending October 31, gas storage experienced an increase of 33 billion cubic feet, resulting in total inventories of 3,915 bcf. This figure reflects a 0.2% decline compared to the previous year, yet it stands 4.3% above the five-year average. Natural gas is experiencing renewed buying activity, as evidenced by a 32.92% increase in open interest, reaching 23,868. Support levels are identified at Rs 385.2 and Rs 369.5, whereas resistance levels are established at Rs 410.5 and Rs 420.1.