US natural gas prices rise to $2.89/MMBtu
US natural gas prices rose to $2.89 per million British thermal units on Monday, with lower Lower 48 production and higher LNG export facility flows cited as support.
US natural gas prices rose to $2.89 per million British thermal units on Monday, as lower domestic output and stronger LNG exports supported the market. Average gas production across the Lower 48 states fell to a two-week low of 111.7 bcfd on Friday, while flows to the nine major US LNG export facilities increased to a 20-week high of 18.8 bcfd. Inventories have remained above the five-year average since March after record production and mild spring weather, but hotter temperatures are starting to reduce the surplus. Analysts put storage at about 3.6% above normal in the week ending September 11, compared with 4.8% a week earlier.
Forecasts show temperatures staying mostly above normal through September 26, although the outlook is for less extreme heat than previously expected. Warmer weather is likely to keep power generators using more natural gas to meet higher air-conditioning demand.