US Natgas Prices Drop to 2-Week Low

US natural gas prices fell to $3.07 per million British thermal units on Monday, extending the previous session’s losses to reach a two-week low as mild weather persists. Forecasts call for mild temperatures through late October, limiting both heating and cooling demand. At the same time, El Niño-related expectations continue to weigh on the winter demand outlook. Meanwhile, data showed the storage surplus has been shrinking in recent weeks, with inventories as of October 9 standing 3.9% below year-ago levels and just 1.3% above the five-year average. In addition, average gas flows to the nine major US LNG export terminals slipped to 17.6 bcfd so far in October from 17.9 bcfd in September. On the supply side, gas output in the Lower 48 states averaged 110.8 bcfd this month so far, down from record highs of 113.3 bcfd in August and September.