US Natgas Prices Fall Back to 2-Month Low

US natural gas prices retreated on Friday to a two-month low of $2.72 per MMBtu, reversing a modest gain in the previous session as mild weather forecasts weighed on expected heating demand. Above-average temperatures are expected across the Midwest and East through November 5, according to Commodity Weather Group, likely limiting gas consumption. This outweighed support from a smaller-than-usual storage build, strong LNG feedgas demand, and lower production. EIA data showed that energy companies added 77 bcf of natural gas to storage in the week ended October 16, below the 86 bcf injected during the same week last year and the five-year average of 87 bcf. Meanwhile, average gas flows to the nine major US LNG export facilities rose to 18.2 bcfd in October, up from 17.9 bcfd in September. On the supply side, natural gas production across the Lower 48 states averaged 111.4 bcfd this month, down from record highs of 113.3 bcfd in August and September.

US natural gas prices rebounded to $2.81 per MMBtu, recovering slightly from a two-month low of $2.79 recorded on October 21, after the EIA reported a smaller-than-expected weekly increase in storage inventories. Lower production earlier this month likely contributed to reduced gas injections, with energy companies adding 77 billion cubic feet (bcf) to storage in the week ended October 16, below market expectations of 79 bcf. The increase was also lower than the 86 bcf added during the same week last year and the five-year average of 87 bcf. Total inventories reached 3.644 trillion cubic feet, 4% below year-earlier levels but 1% above the five-year average. Meanwhile, average natural gas output across the Lower 48 states declined from record highs of 113.3 billion cubic feet per day (bcfd) in August and September to 111.6 bcfd so far in October. In contrast, average gas flows to the nine major US LNG export facilities increased to 18.1 bcfd in October, up from 17.9 bcfd in September.

Natural gas decreased to 2.95 USD/MMBtu, the lowest since September 2026. Over the past 4 weeks, Natural gas lost 0.49%, and in the last 12 months, it decreased 14.48%.