US natural gas futures dropped 9% to a two-week low below $4/MMBtu this week, pressured by near-record output and forecasts for milder weather over the next two weeks. Production in the Lower 48 states rose to 105.7 billion cubic feet per day (bcfd) in March, surpassing February's record of 105.1 bcfd. However, gas flows to U.S. LNG export plants also reached 15.6 bcfd, matching last month's record. The latest EIA report showed US utilities withdrew 62 billion cubic feet (bcf) of gas for the week ending March 7, exceeding forecasts of 50-55 bcf. As a result, storage levels remain 27% lower than the same period last year and 11.9% below the five-year average.
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