U.S. Natgas Prices Edge Higher

U.S. natural gas prices edged up to $2.97 per MMBtu on Wednesday, attempting to rebound from a four-week low hit in the previous session, as support from improving LNG export activity and reduced output partly offset weak demand due to mild weather. Average gas flows to the nine major US LNG export terminals rose to 18.2 bcfd so far in October from 17.9 bcfd in September. Meanwhile, gas production across the Lower 48 states averaged 111.4 bcfd this month, down from record highs of 113.3 bcfd in August and September. The storage surplus continued to shrink, with inventories as of October 9 standing 3.9% below year-earlier levels and just 1.3% above the five-year average. Meanwhile, mild temperatures are expected to persist through late October, curbing both heating and cooling demand, while expectations of a “Super El Niño” further weigh on the winter demand outlook.