US Natgas Prices Rise After EIA Data

US natural gas prices rose to $2.92 per million British thermal units after EIA data showed that high temperatures and strong air-conditioning demand limited the amount of gas added to storage last week. Energy firms injected 44 billion cubic feet into storage in the week ended September 11, below the 87 bcf increase a year earlier and the five-year average of 74 bcf. Total inventories reached 3.298 trillion cubic feet, around 3.6% below last year’s level but 3.7% above the five-year average. Meanwhile, forecasts indicate warmer-than-normal weather could persist through October 2, supporting gas demand from power generators. Average flows to the nine major US LNG export facilities were expected to fall to a three-week low of 17.5 bcfd due mainly to maintenance at Cameron LNG in Louisiana. On the supply side, Lower 48 production averaged 113.1 bcfd in September, above August’s record monthly average of 112.2 bcfd.

US natural gas prices were above $2.90 per million British thermal units, reaching their highest level since September 4, driven by lower production and forecasts for continued warm weather. Average output across the Lower 48 states was expected to fall to a two-month low of 108.4 bcfd on Tuesday. Hotter-than-normal conditions have also increased gas consumption for power generation, with analysts estimating that storage was 3.6% above the five-year average in the week ending September 11, down from 4.8% the previous week. Despite record production and mild spring weather keeping inventories above the five-year average since March, the surplus has continued to narrow. Meteorologists expect temperatures to remain mostly above normal through September 30, likely sustaining elevated demand for air conditioning and gas-fired power generation. Meanwhile, average flows to the nine major US LNG export facilities rose to 18.3 bcfd so far in September, up from 17.2 bcfd in August.

US natural gas prices rose to $2.9 per million British thermal units, supported by lower domestic production and stronger LNG exports. Average gas output across the Lower 48 states fell to a two-week low of 111.7 bcfd on Friday, while flows to the nine major US LNG export facilities climbed to a 20-week high of 18.8 bcfd. Although record production and mild spring weather have kept inventories above the five-year average since March, hotter temperatures are now beginning to narrow the surplus. Analysts estimate that storage was around 3.6% above normal in the week ending September 11, down from 4.8% a week earlier. Looking ahead, forecasts indicate that temperatures will remain mostly above normal through September 26, although conditions are expected to be less extreme than previously projected. The warmer weather should keep power generators relying more heavily on natural gas to meet increased air-conditioning demand, providing further support for prices.