US Natural Gas Prices Hold Gains

US natural gas prices hovered around $3.02 per MMBtu on Monday, holding their recent gains amid expectations of cooler weather later this month that could boost heating demand. Forecasts turned cooler across the northern and western US for October 12-15, potentially increasing gas consumption. Robust LNG demand also continued to support the market, with feedgas flows to the nine major US export plants averaging 17.9 bcfd in September, up from 17.2 bcfd in August. At the same time, demand for US LNG from European and Asian buyers continued to rise as they sought to replenish storage ahead of winter. Meanwhile, the latest EIA report showed a 64 bcf storage build for the week ended September 25, below the five-year average increase of 80 bcf, indicating that the inventory surplus is gradually narrowing. Partly offsetting these supportive factors, Lower 48 production remained solid, averaging a record 113.3 bcfd in September and matching the monthly record high set in August.