FX.co ★ US Natgas Prices Rise to Nearly 3-Week High

US natural gas prices rose above $3.20 per million British thermal units on Tuesday, their highest level since September 24, when they briefly reached $3.37, supported by lower production.

Average output in the Lower 48 states has declined to 110.6 billion cubic feet per day (bcfd) so far in October, down from a record 113.3 bcfd in August and September. The pullback largely reflects production shutdowns linked to Hurricane Isaias, as well as pipeline disruptions and force majeure events across several states.

Daily output was expected to fall to about 107.1 bcfd on Tuesday, an eight‑month low, even as offshore production in the Gulf of Mexico continues to recover. As of Monday, only 25% of offshore gas output remained shut in, compared with a peak of 59% on October 9.

At the same time, LNG feedgas deliveries have averaged 17.4 bcfd in October, down from 17.9 bcfd in September. Looking ahead, forecasts for milder weather and softer demand over the next two weeks may cap additional price gains.