US natural gas futures fell more than 2% to around $3.04 per MMBtu on Tuesday, extending their decline for a third straight session as forecasts signaled subdued heating and cooling demand. The latest outlook from the NOAA points to largely near-normal temperatures across the eastern US over the next two weeks, dampening expectations for a meaningful pickup in gas-fired power generation.
On the supply side, TC Energy lifted a force majeure on Sunday following the completion of pipeline repairs, a move that should enable additional volumes from the Marcellus and Utica shale plays to flow to market. Feedgas deliveries to the nine major US LNG export facilities averaged 18 bcfd in September, up from 17.3 bcfd in August. Overall gas production has averaged 112.3 bcfd so far this month, though daily output has edged lower in recent days.
In storage, analysts estimate that inventories in the week to September 25 were 2.4% above the seasonal norm, slightly lower than the 2.9% surplus recorded previously.