US Natural Gas Prices Decline

US natural gas prices fell to $2.85/MMBtu, their lowest level in nearly two weeks, as forecasts of persistently warm weather point to subdued heating demand, while a slowdown in LNG export activity also weighed on prices. Above-average temperatures are expected across most of the US through November 18, potentially limiting gas consumption. Milder weather and subdued demand have allowed energy companies to inject more gas than usual into storage, with analysts expecting inventories to reach 1.4% above normal in the week ended October 30, up from 1.0% above normal the previous week. Meanwhile, average gas flows to the nine major US LNG export terminals fell to 17.7 bcfd so far in November, down from 18.4 bcfd in October. On the supply side, US producers have reduced production amid low prices.