US Natgas Prices Rise to Nearly 3-Week High

US natural gas prices climbed above $3.20 per million British thermal units on Tuesday, reaching their highest level since September 24, when prices touched $3.37, driven by lower production. Average output across the Lower 48 states fell to 110.6 billion cubic feet per day so far in October, down from record levels of 113.3 bcfd in August and September. The decline reflects production shutdowns caused by Hurricane Isaias, along with pipeline disruptions and force majeure incidents across several states. Daily output was expected to drop to around 107.1 bcfd on Tuesday, an eight-month low, although offshore production in the Gulf of Mexico is gradually recovering. By Monday, only 25% of offshore gas output remained shut in, compared with a peak of 59% on October 9. Meanwhile, LNG feedgas deliveries averaged 17.4 bcfd in October, below September’s 17.9 bcfd. Forecasts for milder weather and weaker demand over the next two weeks could limit further price gains.

US natural gas futures fell for a second day to $3.13 per MMBtu on Tuesday, as Gulf Coast producers restore operations after Hurricane Isaias, while warmer weather forecasts curbed early-season heating demand. As of Monday, around 25% of natural gas output remained shut in, according to the US Marine Minerals Administration. However, the impact on overall supply was limited, as offshore production accounted for just 2% of total marketed gas output. In addition, forecasts of above-average temperatures across the eastern US from October 22-26 could delay the seasonal pickup in heating demand. Prices also declined amid weaker LNG activity, with gas flows to the nine major export plants falling to 17.4 bcfd in October from 17.9 bcfd in September. Meanwhile, Lower 48 output dropped to 110.7 bcfd this month from record highs of 113.3 bcfd in August and September, amid hurricane-related shut-ins, force majeure events and pipeline disruptions in Kentucky, Texas, West Virginia and elsewhere.

US natural gas futures fell to $3.17 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.