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18.09.202602:40:49UTC+00US Natgas Prices Drop Over 1%

US natural gas prices fell more than 1% to $2.85/MMBtu on Friday, wiping out the previous session’s gains as forecasts turned cooler. Above-normal temperatures are now expected to cover a smaller portion of the South and Southeast between September 22 and October 1, which could dampen gas demand from power generators for air conditioning.

Prices had climbed on Thursday after the EIA reported a smaller-than-average storage build for the week ended September 11, reducing the inventory surplus versus the five-year average to 118 Bcf from 148 Bcf a week earlier, as late-season heat bolstered power-sector demand.

Robust output continued to pressure the market, with Lower 48 production averaging 113.1 bcfd so far in September, above August’s record monthly average of 112.2 bcfd. At the same time, average feedgas deliveries to the nine major US LNG export terminals were set to decline to a three-week low of 17.5 bcfd, mainly due to maintenance at the Cameron LNG facility in Louisiana.

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