US Natural Gas Sinks to Two-Year Low

US natural gas prices plunged more than 4% to $2.51 per MMBtu, their lowest level since October 2024, as warm weather forecasts dampened expectations for near-term heating demand. Meteorologists expect temperatures to remain above normal across most of the northern two-thirds of the country, likely keeping heating demand subdued in the coming weeks. Prices also faced pressure from a recovery in daily production, with output across the US Lower 48 states averaging around 113.3 bcfd over the past week. However, production so far this month averaged 111.6 bcfd, below the record highs of 113.3 bcfd in both August and September. Meanwhile, average gas flows to the nine major LNG export terminals rose to 18.2 bcfd so far in October, up from 17.9 bcfd in September, indicating continued strong demand from export facilities.