US natural gas prices were above $3.20 per million British thermal units, approaching a three-week high after government data showed a smaller-than-expected increase in storage. The EIA reported an injection of 67 billion cubic feet for the week ending October 9, below forecasts of 76 bcf and the five-year average of 90 bcf. Total inventories reached 3.567 trillion cubic feet, leaving stocks 3.9% below year-earlier levels but 1.3% above the seasonal norm. Supply constraints have also supported prices, with Lower 48 production averaging 110.8 billion cubic feet per day so far in October, down from record levels of 113.3 bcfd in August and September. Hurricane-related shutdowns, force majeure events and pipeline disruptions contributed to the decline. However, forecasts for milder-than-usual weather through October 29 could restrain heating and cooling demand. Meanwhile, average feedgas deliveries to major US LNG export terminals slipped to 17.5 bcfd from 17.9 bcfd in September.

US natural gas futures rose to around $3.25 per million British thermal units on Thursday, moving back near a three-week high as market attention turned to the EIA’s weekly storage report due later in the day. Analysts expect the storage surplus to narrow to 1.6% above seasonal norms in the week ended October 9, from 2% in the previous week. On the supply side, gas production in the Lower 48 states averaged 110.8 bcfd so far in October, below the record highs of 113.3 bcfd in August and September. The decline reflected hurricane-related shut-ins in the Gulf of Mexico, force majeure events and pipeline disruptions across several states. However, gains were limited by forecasts for mostly milder-than-normal weather across the country through October 29, which is expected to curb both heating and cooling demand. In addition, average feedgas deliveries to the nine major US LNG export terminals eased to 17.5 bcfd this month so far, from 17.9 bcfd in September.

US natural gas futures fell below $3.20 per million British thermal units, retreating from a nearly three-week high of $3.283 reached on October 13, mainly due to forecasts for relatively mild weather across the country through October 29, which are expected to limit both heating and cooling demand. Also, average feedgas deliveries to the nine major US liquefied natural gas export terminals eased to 17.5 billion cubic feet per day so far this month, down from 17.9 bcfd in September. On the other hand, domestic production in the Lower 48 states declined to 110.8 bcfd in October, compared with record averages of 113.3 bcfd in August and September. The reduction reflected hurricane-related Gulf of Mexico shut-ins, force majeure events and pipeline disruptions in several states. Meanwhile, analysts estimate inventories fell to 1.6% above seasonal norms in the week ending October 9, from 2% previously, ahead of Thursday’s government storage report.