US Natgas Prices Drop Over 1%

US natural gas prices fell more than 1% to $2.85/MMBtu on Friday, erasing the previous session’s gains as weather forecasts turned cooler. Above-average temperatures are now expected to cover a smaller area of the South and Southeast from September 22 to October 1, potentially curbing gas demand from power generators for air conditioning. Prices had risen on Thursday after the EIA reported a below-average storage build for the week ended September 11, narrowing the inventory surplus over the five-year average to 118 Bcf from 148 Bcf a week earlier, as late-season heat boosted power-sector demand. Strong production also continued to weigh on the market, with Lower 48 production averaging 113.1 bcfd in September, above August’s record monthly average of 112.2 bcfd. At the same time, average flows to the nine major US LNG export facilities were expected to fall to a three-week low of 17.5 bcfd, primarily due to maintenance at Cameron LNG in Louisiana.