US Natgas Prices Fall Back to 2-Month Low

US natural gas prices fell back to $2.76 per MMBtu on Friday, their lowest level in two months, as mild weather forecasts weighed on expected heating demand. Above-average temperatures are expected across the Midwest and East through November 5, according to Commodity Weather Group, likely limiting gas consumption. This outweighed support from a smaller-than-usual storage build, strong LNG feedgas demand, and lower production. EIA data showed that energy companies added 77 bcf of natural gas to storage in the week ended October 16, below the 86 bcf injected during the same week last year and the five-year average of 87 bcf. Meanwhile, average gas flows to the nine major US LNG export facilities rose to 18.2 bcfd in October, up from 17.9 bcfd in September. On the supply side, natural 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.