US Natgas Prices Hit 11-Week High

US natural gas prices climbed above $3.0/MMBtu, reaching their highest level since July 8, as forecasts for hot US autumn weather pointed to stronger demand for gas-fired power generation. Above-average temperatures are expected across the South-Central US through October 6, potentially extending air-conditioning use and lifting gas consumption. The storage surplus is also shrinking as late-summer heat boosted power-sector demand, offsetting the impact of strong production. Analysts estimated that inventories were 3% above the five-year average for the week ended September 18, down from a 3.7% surplus a week ago. At the same time, LNG export activity remains robust, with average gas flows to the nine major LNG export plants rising to 18 bcfd so far in September from 17.2 bcfd in August. Stronger overseas demand is also supporting exports, with buyers in Europe and Asia seeking to replenish inventories ahead of winter amid disruptions to LNG flows from the Persian Gulf.