FX.co ★ US Natgas Prices Rebound

US natural gas futures experienced an increase of over 2%, reaching approximately $3.40 per MMBtu, reversing a two-day decline. This recovery was influenced by positive sentiment carried over from the previous week's EIA storage report. The broader energy market also saw gains, spurred by a modest output increase from OPEC+, which added to the overall market optimism. The EIA data from last week revealed a smaller-than-anticipated storage build of 53 billion cubic feet for the week concluding on September 26, significantly below both the projections and the five-year average of 85 billion cubic feet. Total inventories rose to 3.561 trillion cubic feet, marginally surpassing last year's figures and standing about 5% above the seasonal average. Production in the Lower 48 states slightly decreased in September from record levels, while LNG exports reached new peaks. Additionally, prices could receive further support from projections of a significant temperature drop approaching mid-October, likely increasing heating demand, although warmer early October temperatures have temporarily limited consumption.