US Natural Gas Prices Soar on Hot Weather Forecast
US natural gas prices have reached their highest level since July 8, according to Trading Economics. The price surge is attributed to forecasts of hotter-than-usual autumn weather across the South-Central United States through October 6.
The prolonged heat will likely prolong air-conditioning use and increase gas consumption. Analysts estimate that inventories are narrowing as late-summer heat lifts demand from the power sector, countering strong production.
LNG export activity remains solid, with average gas flows to major LNG export plants reaching 18 bcfd in September, up from 17.2 bcfd in August. Buyers in Europe and Asia are seeking to rebuild inventories ahead of winter, and disruptions to LNG flows from the Persian Gulf add support to overseas demand.