US Natgas Prices Rise for 2nd Session

US natural gas prices rose above $2.94 per million British thermal units, reaching their highest level since September 4, driven by lower production and forecasts for continued warm weather. Average output across the Lower 48 states was expected to fall to a two-month low of 108.4 bcfd on Tuesday. Hotter-than-normal conditions have also increased gas consumption for power generation, with analysts estimating that storage was 3.6% above the five-year average in the week ending September 11, down from 4.8% the previous week. Despite record production and mild spring weather keeping inventories above the five-year average since March, the surplus has continued to narrow. Meteorologists expect temperatures to remain mostly above normal through September 30, likely sustaining elevated demand for air conditioning and gas-fired power generation. Meanwhile, average flows to the nine major US LNG export facilities rose to 18.3 bcfd so far in September, up from 17.2 bcfd in August.