FX.co ★ US Natgas Prices Edge Down, Set for 10% Weekly Gain

U.S. natural gas futures decreased slightly to $3.16 per mmBtu on Friday, yet they remained poised for a weekly increase of nearly 10%. Concerns over supply bolstered prices as production in the Lower 48 states fell to 107.4 bcfd so far in September, down from a record high of 108.3 bcfd in August, with Friday’s output anticipated to touch an 11-week low of 106.3 bcfd. This previous high level of production had increased storage injections, resulting in inventories being 6% above the five-year average and 1% higher than the previous year. The Energy Information Administration (EIA) reported a 75 bcf storage build for the week ending September 19, consistent with forecasts. Looking ahead, forecasts indicate above-average warmth extending into early October. Meanwhile, LNG feedgas flows averaged 15.7 bcfd in September, slightly below August levels. In regional spot markets, prices remained negative at the Waha Hub in Texas and the AECO in Alberta due to pipeline bottlenecks and maintenance issues, despite the broader trends of price increases.