The price of natural gas fell sharply by -3.25% to settle at 291.4, mostly due to record output levels and predictions of milder weather. Prices were further pressured by lower predictions for heating demand over the next two weeks. According to the EIA, US utilities increased the amount of gas they stored by 74 billion cubic feet, exceeding the five-year average but falling just short of market expectations.
October’s average daily gas output of 104.1 billion cubic feet was up from September, according to LSEG, indicating strong production. Moreover, from 3-14 November, meteorologists expected a change in weather from below-average to near-normal, which would lower the need for petrol.
The impact of milder weather expectations is expected to cause the Lower 48 states’ petrol demand, including exports, to drop from 109.2 bcfd this week to 104.2 bcfd next week. Nonetheless, while gas flows to US LNG export facilities climbed in October, pipeline shipments to Mexico fell.
