US natural gas prices dropped more than 4% to about $2.92 per MMBtu, the lowest level in a week, as recovering domestic output and larger-than-expected storage builds outweighed support from stronger LNG exports.
Data from the EIA showed inventories rising by 80 billion cubic feet last week, above market expectations for a 75 bcf increase and accelerating from the prior week’s 77 bcf injection. Total gas in storage climbed to 3.724 trillion cubic feet, 3.8% below the level a year earlier but 1% above the five-year average.
At the same time, production in the Lower 48 states recovered to roughly 113.3 billion cubic feet per day, boosting domestic supply. Forecasts for milder-than-normal temperatures through November 13 are also expected to curb heating demand, adding further downside pressure on prices.
Even so, firmer LNG exports are offering some support. Average feedgas deliveries to the nine major US export terminals rose to 18.5 bcfd in October, up from 17.9 bcfd in September.
