US Natgas Prices Fall to 1-Week Low

US natural gas prices fell more than 4% to around $2.92/MMBtu, the lowest in one week, as recovering domestic production and stronger-than-expected storage additions outweighed support from rising LNG exports. According to the EIA, inventories increased by 80 billion cubic feet last week, exceeding forecasts for a 75 bcf build and accelerating from the previous week’s 77 bcf injection. Total stocks reached 3.724 trillion cubic feet, 3.8% below year-earlier levels but 1% above the five-year average. Meanwhile, output across the Lower 48 states recovered to approximately 113.3 billion cubic feet per day, improving domestic supply availability. Forecasts for milder-than-normal temperatures through November 13 are also expected to limit heating demand, adding further downward pressure on prices. However, stronger LNG exports provide some support, with average flows to the nine major US export terminals rising to 18.5 bcfd in October, compared with 17.9 bcfd in September.