US Natural Gas Prices Plummet on Near-Record Output and Milder Weather
US natural gas futures plummeted about 2 percent to a two-week low on Friday due to near-record output, ample storage levels, and forecasts for milder weather over the next fortnight.
The front-month gas futures contract for October delivery on the New York Mercantile Exchange dropped by 4.5 cents or 1.6 percent to $2.789 per million British thermal units (mmBtu), putting it on track for its lowest close since August 25.
Financial firm LSEG reported that average gas output in the Lower 48 states rose to a monthly record high of 113.4 billion cubic feet per day (bcfd) so far in September, up from 112.2 bcfd in August.
Record output and mild spring weather have allowed energy firms to maintain an above-average level of gas inventory since March, but with hotter-than-normal weather last week, analysts said the amount of gas in storage likely slid to 3.6 percent above normal during the week ended September 11.