NEW YORK: US natural gas futures rose to a 21-month high on Friday as liquefied natural gas (LNG) exports jumped to near record highs.
Front-month gas futures rose 5.3 cents, or 1.6%, to settle at $3.354 per million British thermal units, their highest since January 2019 for a second consecutive day.
For the week, the front-month gained about 12%, putting it up for a sixth week in a row for the first time since July 2016. The contract gained about 64% during that time.
For the month, the front-month was up about 33% after losing 4% last month.
Data provider Refinitiv said output in the Lower 48 US states was on track to rise to 86.6 billion cubic feet per day (bcfd) on Friday, up 2.1 bcfd over the past two days as producers restore Gulf of Mexico wells shut ahead of Hurricane Zeta. Energy firms shut 4.1 bcfd of production during the six days before the storm hit on Wednesday.
However, so far in October output has only averaged 87.3 bcfd. That would be the lowest in a month since May and puts output on track to drop for a fourth month in a row for the first time since June 2016, according to Refinitiv and federal energy data. With milder weather expected in mid-November, Refinitiv projected demand, including exports, would rise from an average of 97.6 bcfd this week to 98.1 bcfd next week before dropping to 94.3 bcfd in two weeks.
The amount of gas flowing to LNG export plants was on track to rise to 9.46 bcfd on Friday, the highest since feedgas hit a record of 9.53 bcfd on March 31 as rising global prices over the past couple of months prompted buyers in Europe and Asia to purchase more US gas.-Reuters
Comments
Comments are closed for this article.