Natural gas is down by 5%

Natural gas decreased 5% to 3.1321 USD/MMBtu

US natural gas prices fell to $3.15 per MMBtu on Friday as traders took profits after prices surged to a 13-week high in the previous session amid supply disruptions in West Virginia. TC Energy’s Columbia Gas Transmission pipeline in Appalachia declared force majeure due to an unexpected mechanical issue, prompting the biggest single-day gain in gas prices since January. The market also remains supported by rising LNG feedgas demand, with flows to the nine major export plants averaging 17.8 bcfd in September, up from 17.2 bcfd in August, even with the 0.8-bcfd Cove Point facility offline for planned maintenance. Meanwhile, EIA data showed inventories rose by 53 Bcf for the week ended September 18, narrowing the storage surplus over the 5-year average to 95 Bcf from 118 Bcf a week ago, as hot weather boosted cooling demand. While September production remains near record levels at an average 112.8 bcfd, daily output has been falling mainly due to declines in Louisiana and West Virginia.

US natural gas prices rose to $3.2 per million British thermal units, their highest level since July 8, after an EIA report showed a storage build broadly in line with expectations. Energy firms added 53 billion cubic feet to inventories in the week ended September 18, below the 77 bcf increase recorded a year earlier and the five-year average of 76 bcf, as hot weather boosted cooling demand. Inventories stood 2.9% above normal, down from 3.7% the previous week. US Lower 48 production was also on track to fall to an 11-week low of 108.4 bcfd on Thursday, mainly due to declines in Louisiana and West Virginia. Weather forecasts point to mostly normal conditions through October 9. Meanwhile, average gas flows to the nine major US LNG export plants reached 17.8 bcfd in September, up from 17.2 bcfd in August, despite the planned shutdown of Berkshire Hathaway Energy’s 0.8-bcfd Cove Point facility for annual maintenance.