US Natural Gas Prices Ease

US natural gas futures fell to $3.15 per MMBtu on Monday after rising to a two-week high in the previous session on supply disruptions in the Gulf of Mexico caused by Hurricane Isaias. Producers shut in around 1.3 bcfd, or 59% of offshore Gulf output. However, the impact on overall US supply was limited, as offshore production accounted for just 1.9 bcfd, or 2% of total marketed gas production in 2025. Meanwhile, the latest EIA data showed inventories rose by 85 Bcf in the week ending October 2, exceeding expectations of 79 Bcf and signaling adequate domestic supply. Further weighing on prices, LNG feedgas flows to major US export terminals averaged 17.1 bcfd so far in October, down from 18.0 bcfd in September, largely due to the delayed restart of a liquefaction train at Freeport LNG and planned maintenance at Cove Point. Still, demand for US LNG from European and Asian buyers remained strong amid persistent risks to LNG supplies from the Middle East.

Natural gas futures fell to $3.17 per MMBtu on Thursday, halting four consecutive sessions of gains as higher domestic storage momentarily offset the outlook for stronger heating demand and persistent supply tightness elsewhere. Data from the EIA showed US energy companies added 85 billion cubic feet to storage in the week ending October 2, exceeding expectations of 79 bcf and rivaling peak injections seen in June. On top of that, domestic supply availability could increase as Gulf hurricanes threaten to disrupt operations at major LNG export terminals. This stalled the steady rally in natural gas futures seen earlier this month, when forecasts of colder weather prompted utilities to position for early-season heating demand. Meanwhile, overseas demand for US LNG remained elevated across Europe and Asia as strikes against commercial vessels in the Strait of Hormuz clouded the export outlook for top producer Qatar.

US natural gas prices rose to $3.26/MMBtu on Thursday, rising for the fifth session to a two-week high, supported by lower production and concerns over storm-related supply disruptions in the Gulf of Mexico. Lower 48 production averaged 111.5 bcfd so far in October, down from record highs of 113.3 bcfd in both August and September, partly due to recent force majeure events and other pipeline disruptions in Kentucky, Texas and West Virginia. Traders are monitoring Tropical Storm Isaias, which is expected to reach the Gulf Coast as a hurricane on Friday. While storms can disrupt Gulf Coast gas production and lift prices, they can also weigh on demand if LNG export facilities shut down or power outages reduce gas consumption. Meanwhile, daily feedgas flows rose as Freeport LNG increased gas intake following the return of a liquefaction train from maintenance. Expectations for a smaller-than-usual build in weekly gas storage, with the data due later in the day, also provided support.