US Natgas Prices Rise to Nearly 3-Week High

US natural gas prices climbed above $3.20 per million British thermal units on Tuesday, reaching their highest level since September 24, when prices touched $3.37, driven by lower production. Average output across the Lower 48 states fell to 110.6 billion cubic feet per day so far in October, down from record levels of 113.3 bcfd in August and September. The decline reflects production shutdowns caused by Hurricane Isaias, along with pipeline disruptions and force majeure incidents across several states. Daily output was expected to drop to around 107.1 bcfd on Tuesday, an eight-month low, although offshore production in the Gulf of Mexico is gradually recovering. By Monday, only 25% of offshore gas output remained shut in, compared with a peak of 59% on October 9. Meanwhile, LNG feedgas deliveries averaged 17.4 bcfd in October, below September’s 17.9 bcfd. Forecasts for milder weather and weaker demand over the next two weeks could limit further price gains.