US Natgas Prices Edge Up from 2-Month Low

US natural gas prices rebounded to $2.81 per MMBtu, recovering slightly from a two-month low of $2.79 recorded on October 21, after the EIA reported a smaller-than-expected weekly increase in storage inventories. Lower production earlier this month likely contributed to reduced gas injections, with energy companies adding 77 billion cubic feet (bcf) to storage in the week ended October 16, below market expectations of 79 bcf. The increase was also lower than the 86 bcf added during the same week last year and the five-year average of 87 bcf. Total inventories reached 3.644 trillion cubic feet, 4% below year-earlier levels but 1% above the five-year average. Meanwhile, average natural gas output across the Lower 48 states declined from record highs of 113.3 billion cubic feet per day (bcfd) in August and September to 111.6 bcfd so far in October. In contrast, average gas flows to the nine major US LNG export facilities increased to 18.1 bcfd in October, up from 17.9 bcfd in September.