US natural gas prices fall 4% on mild weather and lower demand view
UNG•US November natural gas futures fell 12 cents, or 4%, to settle at $3.116 per mmBtu, their lowest close since October 6, as mild weather, lower demand forecasts and a recent output increase weighed on prices.
1. Prices decline
US natural gas futures for November delivery fell 12 cents, or 4%, on Friday to settle at $3.116 per million British thermal units, their lowest close since October 6. The contract lost about 3% this week after gaining about 6% last week.
2. Supply and demand
Average Lower 48 gas output was 110.8 billion cubic feet per day (bcfd) so far in October, down from records of 113.3 bcfd in August and September, but slightly higher than on Thursday. LSEG forecast demand, including exports, rising from 103.87 bcfd this week to 106.8 bcfd over the next two weeks.
3. LNG flows and benchmarks
Average flows to the nine major US LNG export plants eased to 17.6 bcfd so far in October, from 17.9 bcfd in September. Daily feedgas flows were on track to reach a five-month high of 18.9 bcfd on Friday; Sabine Pass flows reached 4.8 bcfd, while Golden Pass feedgas hit a record 0.7 bcfd. European and Asian gas benchmarks were near $29 per mmBtu.
