U.S. Natural Gas Futures Prices Stable Amid Steady Demand Forecasts
U.S. natural gas futures prices have stabilized despite concerns that increased production will lead to lower prices. According to forecasts, demand for natural gas is expected to remain steady over the next two weeks. The price of front-month gas futures for November delivery on the New York Mercantile Exchange was $3.002 per million British thermal units (MMBtu), down 0.9 cents or 0.3% from the previous day.
Financial firm LSEG reported that average gas output in the US Lower 48 states eased to 112.2 billion cubic feet per day (bcfd) so far in September, down from a monthly record high of 112.3 bcfd in August. However, output has averaged a lower 109.4 bcfd over the past week due to the force majeure declared by Canadian energy firm TC Energy's Columbia Gas Transmission unit on the Mountaineer XPress pipe.
Despite the increase in average gas flows to the nine big US LNG export plants to 17.9 bcfd so far in September, up from 17.2 bcfd in August, prices remain stable due to forecasts of steady demand and mostly normal weather across the country through October 15.