US Natgas Prices Plummet Amid Near-Normal Weather Outlook

US natural gas prices declined to their lowest level in a week on October 1st, falling below $3.0 per MMBtu amid forecasts of near-normal weather and reduced demand for heating and cooling.

According to analysts, average temperatures across the US are expected to remain mostly normal through October 15th, which could limit the increase in gas-fired power consumption.

The outlook was also influenced by a mechanical problem at Columbia Gas Transmission, which has since been resolved, allowing production to resume and potentially boost supply.

Traders will be watching the weekly storage report later today, with expectations of a 2.4% increase in inventories above normal for the week through September 25th, down from 2.9% in the previous week.