US Natural Gas Prices Hit 11-Week High Amid Cooler Weather Forecasts
US natural gas prices have reached an 11-week high due to forecasts of cooler weather and increased demand for heating. The futures price climbed 2.0% on Wednesday, with the front-month contract for October delivery on the New York Mercantile Exchange rising 7.6 cents, or 2.6%, to $3.041 per million British thermal units.
This marks a significant milestone as it's the first time the front-month contract has closed above the $3 per mmBtu level since early July. Analysts predict that heating demand will increase due to cooler weather, which is expected to remain mostly near normal through October 8.
The drop in daily output and an increase in flows to liquefied natural gas export plants this month also contributed to the price rise. The average gas output in the US Lower 48 states rose to a record high of 112.9 billion cubic feet per day (bcfd) in September, but is on track to drop to an 11-week low of 109.8 bcfd on Wednesday.