US natural gas prices rose to approximately $3.26 per million British thermal units, nearing a three-week peak. The increase came after the Energy Information Administration (EIA) reported a smaller-than-anticipated rise in storage levels for the week ending October 9. The EIA recorded an injection of 67 billion cubic feet, below market expectations of 76 billion cubic feet and the five-year average of 90 billion cubic feet.
Total inventories reached 3.567 trillion cubic feet, marking a 3.9% deficit compared to the same period last year. However, stocks remained 1.3% above the seasonal norm. Supply constraints further bolstered prices, with production in the Lower 48 states averaging 110.8 billion cubic feet per day in October, down from record levels of 113.3 billion cubic feet per day in August and September. Factors such as hurricane-related shutdowns, force majeure events, and pipeline disruptions contributed to this decline.
Despite these supply constraints, forecasts predict milder-than-usual weather through October 29, which could limit demand for heating and cooling. Additionally, average feedgas deliveries to major US liquefied natural gas (LNG) export terminals decreased to 17.5 billion cubic feet per day from 17.9 billion cubic feet per day in September.