US Natural Gas Prices Rise on Higher LNG Flows

US natural gas prices rose to $3.07 per MMBtu on Wednesday, supported by rising LNG export activity. Feedgas deliveries to the nine major US LNG export plants averaged around 19.2 bcfd over the past two weeks, while flows so far this month averaged 18.3 bcfd, up from 17.9 bcfd in September. Growing demand for US LNG from European and Asian buyers also supported prices, as the two regions raced to secure supplies ahead of winter. However, gains were limited by forecasts for above-normal temperatures across the eastern two-thirds of the country, which could limit heating demand in the coming weeks. On the supply side, Lower 48 output averaged 112.0 bcfd so far in October, down from record highs of 113.3 bcfd in August and September, although production has recovered to around 113.5 bcfd over the past week.