US Natural Gas Prices Reach Four-Month High on Supply Tightness

US natural gas prices have surged to $3.13 per MMBtu, marking the highest level since September 25. The rally extended for a fourth straight session, driven by declining production and rising demand. Output in the Lower 48 states dropped to 111.7 billion cubic feet per day (bcfd) in October, down from record highs of 113.3 bcfd in August and September. The decline was attributed to disruptions affecting pipelines in Kentucky, Texas, and West Virginia.

LNG demand also played a key role, with feedgas flows increasing as Freeport LNG in Texas resumed gas intake following maintenance. The facility’s ramp-up provided additional support to prices. Meanwhile, warmer-than-expected forecasts across much of the US through October 10 could boost cooling demand and gas consumption for power generation, further tightening supply.