NatGas Prices Fall to Almost 6-Month Low

US natural gas prices fell more than 5% on Friday to nearly $2.65 per MMBtu, approaching their lowest level since late April, as forecasts for milder weather weighed on expectations for heating demand. Above-average temperatures are expected across the Midwest and East through November 5, according to Commodity Weather Group, likely curbing gas consumption. The price decline came despite a smaller-than-usual storage build, strong LNG feedgas demand, and lower production. EIA data showed that US natural gas inventories rose by 77 Bcf in the week ended October 16, below both the 86 Bcf added during the same week last year and the five-year average increase of 87 Bcf. Meanwhile, average feedgas flows to the nine major US LNG export terminals climbed to 18.2 Bcf/d in October, up from 17.9 Bcf/d in September. On the supply side, production across the Lower 48 states averaged 111.4 Bcf/d this month, down from record highs of 113.3 Bcf/d in August and September.