US Natural Gas Prices Hit 11-Week High Amid Cooler Weather Forecasts
US natural gas prices have surged to an 11-week high as forecasts predict cooler weather will boost heating demand. The futures climbed 2.0% on Wednesday, with front-month gas futures 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 the first time the contract has closed above the $3 per mmBtu level since early July, a psychological technical resistance point. The increase in prices comes as average gas output in the US Lower 48 states rose to 112.9 billion cubic feet per day (bcfd) in September, up from a monthly record high of 112.2 bcfd in August.
However, on a daily basis, output is expected to drop to an 11-week low of 109.8 bcfd on Wednesday. Despite this, energy firms have been able to keep gas inventory levels above the five-year average since March due to record output and mild spring weather.