US Natural Gas Prices Stay Firm on Cooler Weather Outlook
US natural gas prices maintained their upward momentum on Monday, trading around $3.02 per MMBtu. The gains were driven by forecasts of cooler weather in the northern and western regions of the US from October 12-15, which could boost heating demand.
Demand for liquefied natural gas (LNG) remained strong, with feedgas flows to the nine major US export plants averaging 17.9 billion cubic feet per day (bcfd) in September, up from 17.2 bcfd in August. European and Asian buyers continued to purchase US LNG to replenish their storage ahead of winter, supporting prices.
The latest report from the Energy Information Administration (EIA) showed a 64 bcf storage build for the week ended September 25, below the five-year average increase of 80 bcf. This indicates that the inventory surplus is gradually narrowing, which could further support prices.
Offsetting these bullish factors, Lower 48 production remained robust, averaging a record 113.3 bcfd in September, matching the monthly record high set in August.