US natural gas futures saw a slight decline on Monday, settling at $3.15 per MMBtu. This followed a previous session where prices had hit a two-week high, driven by supply disruptions in the Gulf of Mexico due to Hurricane Isaias. Producers had shut in around 1.3 billion cubic feet per day (bcfd), which accounted for 59% of the offshore Gulf output.
The impact on overall US supply remained limited, as offshore production represents just 2% of the total marketed gas production in 2025. Meanwhile, the latest data from the Energy Information Administration (EIA) showed that inventories rose by 85 billion cubic feet (Bcf) in the week ending October 2, surpassing expectations of 79 Bcf. This indicated that domestic supply levels were adequate.
Additionally, liquefied natural gas (LNG) feedgas flows to major US export terminals averaged 17.1 bcfd in early October, down from 18.0 bcfd in September. This decline was attributed to the delayed restart of a liquefaction train at Freeport LNG and planned maintenance at Cove Point. Despite these setbacks, demand for US LNG from European and Asian buyers remained robust due to ongoing supply risks from the Middle East.