US natural gas prices rose to about $3.13 per MMBtu, advancing for a fourth straight session and hitting their highest level since September 25. The rally was driven by lower production, firm LNG feedgas demand, and expectations of stronger overall consumption.
Average gas output in the Lower 48 has eased to 111.7 bcfd so far in October, down from the record 113.3 bcfd seen in both August and September. Daily production has continued to decline in part due to recent force majeure events and other disruptions on pipelines in Kentucky, Texas, and West Virginia.
LNG demand has also underpinned prices, with daily feedgas flows increasing as Freeport LNG in Texas raises gas intake following the return of one of its liquefaction trains from maintenance.
At the same time, weather forecasts have turned warmer, with above‑average temperatures expected across the western two‑thirds of the US through October 10. This is likely to boost cooling needs and, in turn, natural gas consumption for power generation.
