Forecasts of cooler temperatures and increased demand for heating caused natural gas prices to rise

Anticipated colder weather and higher heating demand in the upcoming week caused the natural gas market to see a 1.86% price hike, ultimately settling at 279.9. Record-high output levels and a generally benign weather forecast through early November did not prevent this growth.

Notably, gas output in the Lower 48 U.S. states surpassed prior records in October, averaging 103.9 billion cubic feet per day (bcfd). Even though it’s still rather warm outside, a move towards cooler winter weather is anticipated.

The London Stock Exchange Group (LON:LSEG) projects that U.S. petrol demand will rise significantly from 97.0 bcfd this week to 104.6 bcfd the next week, including exports. It is noteworthy that even with its robustness, this prognosis is little less than LSEG’s earlier projection.

Regarding output and exports, pipeline shipments to Mexico saw a minor decline in October after reaching a record high in September. On the other hand, gas flows to significant U.S. LNG export plants increased steadily, from 12.6 bcfd in September to 13.6 bcfd in October.

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