Natural gas Hits 24-month Low

US natural gas prices dropped to as low as $2.53 per MMBtu, their lowest level since October 2024, as warm weather forecasts dampened expectations for near-term heating demand. Meteorologists expect temperatures to remain above normal across most of the northern two-thirds of the country, likely keeping heating demand subdued in the coming weeks. Prices also faced pressure from a recovery in daily production, with output across the US Lower 48 states averaging around 113.3 bcfd over the past week. However, production so far this month stood at 111.6 bcfd, below the record highs of 113.3 bcfd in both August and September. Meanwhile, average gas flows to the nine major LNG export terminals rose to 18.2 bcfd so far in October, up from 17.9 bcfd in September, providing some underlying support.

Natural gas decreased to 2.53 USD/MMBtu, the lowest since October 2024. Over the past 4 weeks, Natural gas lost 18.55%, and in the last 12 months, it decreased 36.71%.

US natural gas prices fell more than 5% on Friday to nearly $2.65 per MMBtu, approaching their lowest level since late April, as forecasts for milder weather weighed on expectations for heating demand. Above-average temperatures are expected across the Midwest and East through November 5, according to Commodity Weather Group, likely curbing gas consumption. The price decline came despite a smaller-than-usual storage build, strong LNG feedgas demand, and lower production. EIA data showed that US natural gas inventories rose by 77 Bcf in the week ended October 16, below both the 86 Bcf added during the same week last year and the five-year average increase of 87 Bcf. Meanwhile, average feedgas flows to the nine major US LNG export terminals climbed to 18.2 Bcf/d in October, up from 17.9 Bcf/d in September. On the supply side, production across the Lower 48 states averaged 111.4 Bcf/d this month, down from record highs of 113.3 Bcf/d in August and September.