Natural gas Hits 10-week High

US natural gas prices climbed above $3.0/MMBtu, reaching their highest level since July 8, as forecasts for hot US autumn weather pointed to stronger demand for gas-fired power generation. Above-average temperatures are expected across the South-Central US through October 6, potentially extending air-conditioning use and lifting gas consumption. The storage surplus is also shrinking as late-summer heat boosted power-sector demand, offsetting the impact of strong production. Analysts estimated that inventories were 3% above the five-year average for the week ended September 18, down from a 3.7% surplus a week ago. At the same time, LNG export activity remains robust, with average gas flows to the nine major LNG export plants rising to 18 bcfd so far in September from 17.2 bcfd in August. Stronger overseas demand is also supporting exports, with buyers in Europe and Asia seeking to replenish inventories ahead of winter amid disruptions to LNG flows from the Persian Gulf.

Natural gas increased to 3.01 USD/MMBtu, the highest since July 2026. Over the past 4 weeks, Natural gas gained 5.66%, and in the last 12 months, it decreased 4.6%.

US natural gas prices rose to $2.92 per million British thermal units, the highest in over two weeks, due to lower production. Daily output was expected to fall to an 11-week low of 109.8 billion cubic feet per day on Tuesday. Also, analysts estimated that inventories were 3% above normal for the week ended September 18, down from a 3.7% surplus in the previous week, due to hot weather. Strong output and mild spring weather kept inventories above the five-year average, but higher summer temperatures increased gas demand for power generation and reduced the surplus. Looking ahead, weather forecasts point to mostly normal conditions through October 7. Meanwhile, average gas flows to the nine major US LNG export plants rose to 18 bcfd so far in September from 17.2 bcfd in August, despite the temporary shutdown of the 0.8-bcfd Cove Point LNG facility for planned maintenance.