US natural gas futures fall below $3.20 on mild-weather forecasts
Updated
Summary
US natural gas futures fell below $3.20 per million British thermal units, retreating from a nearly three-week high of $3.283 reached October 13; the report attributed the decline mainly to forecasts for relatively mild weather through October 29, expected to limit heating and cooling demand.
Why it matters
Average feedgas deliveries to the nine major US LNG export terminals eased to 17.5 billion cubic feet per day so far this month, from 17.9 bcfd in September.
Lower 48 domestic production declined to 110.8 bcfd in October, versus record averages of 113.3 bcfd in August and September; the reduction reflected hurricane-related Gulf of Mexico shut-ins, force majeure events and pipeline disruptions in several states.
What remains uncertain
Analysts estimated inventories were 1.6% above seasonal norms in the week ending October 9, down from 2% previously; the government storage report was due Thursday.