US Natgas Prices Edge Up Slightly

US natural gas prices rose above $2.90/MMBtu, driven by tightening production and a slightly colder weather outlook. Lower production over the weekend, particularly in the Appalachia shale region, offered some support and may indicate that producers are adjusting output to the persistently weak price environment. Slightly cooler weather forecasts also provided a modest boost to expectations for heating and power demand as the winter season begins. However, the upside remains constrained by expectations of warmer-than-average conditions across most of the country through November 16, limiting the prospect of a significant increase in consumption. Lower gas flows to LNG export terminals added another headwind, as reduced overseas shipments left more supply available to the domestic market.