US Natgas Prices Edge Up on Tuesday

US natural gas prices fluctuated between $2.8 and $2.9 per million British thermal units as traders assessed production, storage and weather trends. Average Lower 48 output reached 113.0 billion cubic feet per day in September, above August’s monthly record of 112.2 bcfd, although daily production was expected to fall to an 11-week low of 109.8 bcfd on Tuesday. Strong output and mild spring weather kept inventories above the five-year average, but higher summer temperatures increased gas demand for power generation and reduced the surplus. Analysts estimated storage was 3% above normal for the week ended September 18, down from 3.7% previously. Weather forecasts now point to mostly normal conditions through October 7. Meanwhile, average gas flows to the nine major US LNG export plants rose to 18 bcfd in September from 17.2 bcfd in August, despite the temporary shutdown of the 0.8-bcfd Cove Point LNG facility for planned maintenance.