Natural Gas Futures Fall Amid Nor'easter Storm, Pipe Return
US natural gas futures fell 3% on Monday due to expectations of rising daily output following the return to service of the Mountaineer XPress pipe in West Virginia. The pipe was affected by a mechanical issue, but Columbia Gas Transmission lifted its force majeure on Sunday.
The spot market prices also dropped to multi-year lows over the weekend due to low demand caused by a powerful nor'easter storm hitting the region. Next-day spot prices fell below $1 per million British thermal units (mmBtu) in New York, New England, and the Mid-Atlantic.
Financial firm LSEG reported that average gas output in the US Lower 48 states rose to 112.3 billion cubic feet per day (bcfd) in September, tying the monthly record high of August. However, daily output was on track to drop to a near-seven-month low due to work on the Mountaineer XPress pipe.
With cooler weather predicted for October, LSEG forecasts average gas demand to rise from 103.1 bcfd this week to 105.3 bcfd next week. Average gas flows to US LNG export plants also rose to 18.0 bcfd in September, but remained short of the monthly record high.