US natural gas prices edge up on lower daily output
UNG•US natural gas futures rose 0.5% to $3.026 per mmBtu as recent output eased. Analysts expected the storage surplus to narrow to 2.4% above the five-year average for the week ended September 25.
1. Prices and production
November US natural gas futures rose 1.5 cents, or 0.5%, to $3.026 per mmBtu on Wednesday. Prices gained about 3% in September after a 7% rise in August. Average Lower 48 output was 112.2 billion cubic feet per day so far in September, down from August’s monthly record of 112.3 bcfd; output averaged 109.4 bcfd over the past week.
2. Storage surplus narrows
Analysts forecast that US gas inventories would stand 2.4% above the five-year average for the week ended September 25, down from 2.9% the prior week. They expected a 64 billion cubic foot weekly storage build, compared with 53 bcf the previous week and an 80 bcf five-year average.
3. Exports and demand
Average gas flows to the nine major US LNG export plants rose to 17.9 bcfd so far in September, from 17.2 bcfd in August, despite maintenance at Berkshire Hathaway Energy’s Cove Point plant. European and Asian gas benchmarks traded near $24 and $25 per mmBtu, respectively.
