US Natgas Prices Spike on Cooler Weather Forecasts

US natural gas futures have hit an 11-week high after forecasts indicated cooler weather in the coming weeks, leading to increased demand for heating. The front-month gas contract on the New York Mercantile Exchange rose 7.6 cents, or 2.6%, to $3.041 per million British thermal units.

The price increase comes as average gas output in the US Lower 48 states is expected to drop to an 11-week low of 109.8 billion cubic feet per day due to declines in Louisiana and Pennsylvania.

Record output and mild spring weather had allowed energy firms to keep natural gas inventory above the five-year average since March, but hotter-than-normal summer weather forced them to pull fuel from storage for air conditioning power generation.