FX.co ★ US Natgas Prices Rise After EIA Data

US natural gas prices rose to about $3.26 per million British thermal units, nearing a three-week high after government data showed a smaller-than-expected storage build. The EIA reported an injection of 67 billion cubic feet for the week ending October 9, below both market expectations of 76 bcf and the five-year average of 90 bcf. Total inventories increased to 3.567 trillion cubic feet, leaving stocks 3.9% below year-earlier levels but still 1.3% above the five-year seasonal norm.

On the supply side, constraints have also underpinned prices. Average production in the Lower 48 has slipped to 110.8 billion cubic feet per day so far in October, down from record output of 113.3 bcfd in August and September. The decline reflects hurricane-related shutdowns, force majeure declarations, and pipeline disruptions.

Nonetheless, forecasts for milder-than-normal weather through October 29 are expected to limit both heating and cooling demand, which could temper further price gains. At the same time, average feedgas deliveries to major US LNG export terminals edged down to 17.5 bcfd, from 17.9 bcfd in September.