US Natgas Prices Surge Amid Hot Autumn Forecasts
US natural gas prices have reached an 11-week high, surpassing $3.0/MMBtu for the first time since July 8. The increase is attributed to forecasts of hot autumn weather in the South-Central US, which will boost demand for gas-fired power generation.
Above-average temperatures are expected across the region through October 6, leading to extended air-conditioning use and higher gas consumption. As a result, analysts estimate that natural gas inventories have begun to shrink, with a surplus of just 3% above the five-year average as of September 18, down from 3.7% a week prior.
Meanwhile, LNG export activity remains robust, with average gas flows to major facilities increasing to 18 bcfd in September, up from 17.2 bcfd in August. Strong demand for liquefied natural gas from Europe and Asia is driving exports, as buyers seek to replenish inventories ahead of winter amid disruptions to supply from the Persian Gulf.