FX.co ★ US Natgas Prices Rise to Over 7-Month High

U.S. natural gas futures surpassed $4.20 per MMBtu, the highest level since March, driven by increased heating demand and strong LNG exports to Europe and Asia. The forecast for cooler weather at the onset of winter has heightened expectations for elevated gas consumption. Meanwhile, LNG export flows reached an average of 16.6 billion cubic feet per day in October, marking a new record. European buyers have increasingly depended on U.S. gas due to declining Russian supplies and reduced inventories at major hubs, amidst Washington’s push for new energy agreements in trade discussions with Asian nations. On the supply front, U.S. production remained robust at approximately 107 billion cubic feet per day, ensuring the market is well supplied. In the week ending October 27, storage levels in the Lower 48 states increased by 74 billion cubic feet, surpassing forecasts of a 71 bcf build.