US Natgas Prices Fall to 1-Week Low

US natural gas prices slipped below $3.00 per MMBtu, reaching a one-week low as traders anticipated stronger production and relatively mild weather that could limit demand for both heating and cooling. The EIA reported a 64 bcf increase in gas storage for the week through September 25, matching forecasts but remaining below the five-year average build of 80 bcf. Production in the Lower 48 averaged a record 113.3 bcfd in September, although output dropped to about 110.7 bcfd over the past week following a temporary disruption on TC Energy’s Columbia Gas Transmission system. The force majeure, which affected roughly 1.4—1.8 bcfd of flows, was lifted after repairs on September 27. Looking ahead, forecasts call for mostly normal temperatures through October 16. Meanwhile, LNG feedgas demand strengthened, averaging 17.9 bcfd in September versus 17.2 bcfd in August.