US natural gas prices climbed above $2.94 per million British thermal units, their highest level since September 4, supported by lower production and forecasts for persistently warm weather. Average output in the Lower 48 states was expected to drop on Tuesday to 108.4 bcfd, a two‑month low.
Hotter‑than‑normal conditions have boosted gas demand for power generation, as increased use of air conditioning drives electricity consumption. Analysts estimate that gas in storage was 3.6% above the five‑year average in the week ending September 11, down from 4.8% the previous week. Although record production and mild spring weather have kept inventories above the five‑year norm since March, the surplus has been steadily shrinking.
Meteorologists expect temperatures to remain mostly above seasonal norms through September 30, which is likely to sustain elevated demand for air conditioning and gas‑fired power. At the same time, average feedgas flows to the nine major US LNG export plants have increased to 18.3 bcfd so far in September, up from 17.2 bcfd in August.
