FX.co ★ US Natgas Prices Hover at 3-Week Low

U.S. natural gas futures are currently trading at approximately $3.10 per MMBtu, nearing a three-week low amid forecasts of milder weather and strong storage levels that have alleviated concerns over supply constraints. Recent forecasts indicate warmer-than-typical temperatures through late October, dampening expectations for increased heating demand. NatGasWeather suggests significant cooling is unlikely until the month’s final week. Data from LSEG reveals that gas production in the Lower 48 states has averaged 106.4 billion cubic feet per day in October, a slight decline from September's 107.4 bcfd and below the record high of 108.0 bcfd set in August. The earlier rise in production allowed for above-average storage injections, resulting in inventories that are approximately 4% above the norm for this period. Simultaneously, LNG exports continue to provide strong market support, with average flows to U.S. liquefaction plants increasing to 16.3 bcfd in October. Moreover, daily feedgas reached a six-month peak of 17.0 bcfd after the Cove Point terminal, operated by Berkshire Hathaway, resumed operations post-maintenance.