US Natgas Prices Rise After EIA Data

US natural gas prices climbed to around $3.26 per million British thermal units, approaching a three-week high after government data showed a smaller-than-expected increase in storage. The EIA reported an injection of 67 billion cubic feet for the week ending October 9, below forecasts of 76 bcf and the five-year average of 90 bcf. Total inventories reached 3.567 trillion cubic feet, leaving stocks 3.9% below year-earlier levels but 1.3% above the seasonal norm. Supply constraints have also supported prices, with Lower 48 production averaging 110.8 billion cubic feet per day so far in October, down from record levels of 113.3 bcfd in August and September. Hurricane-related shutdowns, force majeure events and pipeline disruptions contributed to the decline. However, forecasts for milder-than-usual weather through October 29 could restrain heating and cooling demand. Meanwhile, average feedgas deliveries to major US LNG export terminals slipped to 17.5 bcfd from 17.9 bcfd in September.