US Natgas Prices Hold Losses

US natural gas prices steadied around $3.0 per MMBtu on Wednesday, following three straight sessions of losses as forecasts pointed to limited heating and cooling demand. The NOAA’s latest outlook calls for mostly near-normal temperatures across the eastern US over the next two weeks, reducing expectations for a significant increase in gas-fired power consumption. In addition, Columbia Gas Transmission lifted force majeure on Sunday after resolving a mechanical problem, allowing production to increase in the coming days. Analysts estimate inventories were 2.4% above normal in the week through September 25, compared with 2.9% previously. Meanwhile, feedgas deliveries to nine major US export facilities averaged 17.9 bcfd in September, up from 17.2 bcfd in August. US natural gas prices are up around 3% in September, but remain almost 8% lower during Q3.

US natural gas prices slipped more than 1.5% to around $3.05 per MMBtu on Tuesday, marking a third consecutive decline as forecasts pointed to limited heating and cooling demand. The NOAA’s latest outlook calls for mostly near-normal temperatures across the eastern US over the next two weeks, reducing expectations for a significant increase in gas-fired power consumption. In addition, Columbia Gas Transmission lifted force majeure on Sunday after resolving a mechanical problem, allowing production to increase in the coming days. Analysts estimate inventories were 2.4% above normal in the week through September 25, compared with 2.9% previously. Meanwhile, feedgas deliveries to nine major US export facilities averaged 17.9 bcfd in September, up from 17.2 bcfd in August.

US natural gas prices steadied around $3.11/MMBtu on Tuesday after a two-day decline, as traders weighed improving LNG export activity and forecasts for continued hot weather against the return of the Mountaineer XPress pipeline in West Virginia. TC Energy has lifted the force majeure on Sunday after repairs were completed on the pipeline, allowing more gas to flow out of the Marcellus/Utica region in the next few days. Meanwhile, the market continues to benefit from rising LNG feedgas demand, with flows to nine major export plants averaging 18 bcfd in September versus 17.3 bcfd in August. Hotter-than-normal weather has also increased air-conditioning demand, narrowing the storage surplus built up amid strong production and mild spring conditions. Analysts expect inventories to have fallen to 2.4% above normal in the week ended September 25, from 2.9% a week earlier. While output remained elevated at 112.3 bcfd so far this month, daily production has been declining.