US Natgas Prices Soar to 8-Week High on LNG Flows and Warm Weather

US natural gas futures rose to an eight-week high on Thursday, driven by rising flows to liquefied natural gas export plants and forecasts for unseasonably warm weather.

The front-month gas futures contract for October delivery on the New York Mercantile Exchange increased 3.6 cents, or 1.2%, to $2.992 per million British thermal units (mmBtu), its highest close since July 9 for a second day in a row.

Prices were also supported by expectations that a federal report would show energy firms added less gas to storage than usual last week due to hot weather.

The average gas output in the US Lower 48 states rose to 112.9 billion cubic feet per day (bcfd) so far in September, up from a monthly high of 112.2 bcfd in August.