FX.co ★ US Natgas Prices Ease Ahead EIA Data

On Thursday, U.S. natural gas futures decreased to $3.44 per MMBtu, ending a five-day upward trend and pulling back from a 10-week peak of nearly $3.50 seen on Wednesday. Market participants were focused on the upcoming EIA storage report, which is anticipated to reveal an injection of approximately 66 billion cubic feet, underscoring the robust production levels in the U.S. Furthermore, LNG feed gas flows have declined to a six-week low due to reduced operations at Venture Global’s Calcasieu plant in Louisiana. Concurrently, average production in the Lower 48 states fell to 107.4 billion cubic feet per day in September, down from the record high of 108.3 billion cubic feet per day recorded in August. The strong production earlier in the year has resulted in storage levels that are around 6% higher than the seasonal average. Meanwhile, demand remains weak, with forecasts predicting warmer-than-average weather through mid-October.