US natural gas prices inched up to $2.97 per MMBtu on Wednesday, attempting to recover from a four-week low seen in the prior session, as stronger LNG export activity and lower production partially offset soft demand amid mild weather conditions. Average gas flows to the nine major US LNG export terminals have increased to 18.2 bcfd so far in October, up from 17.9 bcfd in September. At the same time, gas output in the Lower 48 states has averaged 111.4 bcfd this month, down from the record 113.3 bcfd reached in both August and September.
The storage surplus continued to narrow as well, with inventories as of October 9 standing 3.9% below year-ago levels and just 1.3% above the five-year average. Looking ahead, mild temperatures are expected to persist through late October, restraining both heating and cooling demand, while forecasts for a “Super El Niño” are further dampening the winter demand outlook.
