US natural gas futures top $2.95 in September, near two-month high
US natural gas futures rose above $2.95 per MMBtu for September, the highest in nearly two months, supported by cooling-driven domestic demand and tighter overseas supply amid higher LNG demand.
US natural gas futures rose to above $2.95 per MMBtu in September, the highest in nearly two months, as robust demand domestically was combined with tight supply overseas.
Hot weather across the continental US lifted power-hungry cooling demand early in the month, supporting gas demand for generators.
The developments coincided with surging demand for US LNG in Europe and Asia as the escalation to the war in the Middle East extended the suspension of supply from the region as major economies restock inventories ahead of the winter.
European storage facilities were 65% full, their lowest in the period in 15 years, in a period of added buying competition from Asia as Japan and Korea scrap for their own LNG shipments.
Concurrently, average gas flows to the nine major LNG export plants rose to 18.3 bcfd in early September, up from 17.2 bcfd in August, as Cheniere Energy’s Corpus Christi facility and Freeport LNG in Texas returned to full operations following maintenance.