FX.co ★ US Natgas Prices Fall to 2-Week Low

U.S. natural gas futures experienced a decline of approximately 3%, reaching $3.17 per million British thermal units (MMBtu) — the lowest level observed in the past two weeks. This decrease is attributed to the combination of robust storage levels and predictions of mild weather that are expected to curtail both heating and cooling needs through the end of October. Earlier in the year, record-high production facilitated larger-than-normal storage injections, resulting in current inventory levels being about 4% higher than the seasonal average. According to the most recent data from the Energy Information Administration (EIA), there was an addition of 80 billion cubic feet (bcf) to storage for the week ending October 3, surpassing market forecasts of 77 bcf and last year's figure of 78 bcf. Despite this, the average daily gas output in the lower 48 states has slightly decreased to 106.4 bcf in October, down from September’s 107.4 bcf. On the export front, gas flows to U.S. LNG terminals have reached an average of 16.1 bcf per day thus far this month, increasing from 15.7 bcf per day in September and nearing record levels. Over the course of this week, U.S. natural gas prices have fallen by over 4%, ending a two-week upward trend.