US natgas futures slip on mild weather forecasts, rising output
- That price decline came despite an increase in liquefied natural gas (LNG) exports to a record high.
- Data provider Refinitiv said output in the Lower 48 US states rose to an 11-week high of 90.3 billion cubic feet per day (bcfd) on Tuesday.
US natural gas futures slipped on Wednesday on forecasts for milder weather and lower heating demand in mid-November and a steady rise in output.
That price decline came despite an increase in liquefied natural gas (LNG) exports to a record high.
Front-month gas futures for December delivery fell 4.7 cents, or 1.5%, to $3.012 per million British thermal units (mmBtu) at 8:08 a.m. EST (1308 GMT). That puts the contract down about 10% since hitting a 21-month high of $3.396 on Oct. 30 and lower for a third day in a row for the first time since early September.
Those declines in the front-month caused the premium of the December 2021 contract over December 2020
Data provider Refinitiv said output in the Lower 48 US states rose to an 11-week high of 90.3 billion cubic feet per day (bcfd) on Tuesday, up 4.8 bcfd since Hurricane Zeta hit the Gulf Coast on Oct. 28 as energy firms restored output from Gulf of Mexico wells shut ahead of the storm.
Production averaged 89.6 bcfd so far in November, up from a five-month low of 87.4 bcfd in October. That, however, was still well below the all-time high of 95.4 bcfd in November 2019.
With milder weather coming, Refinitiv projected demand, including exports, would drop from an average of 96.7 bcfd this week to 93.2 bcfd next week. That forecast is lower than Refinitiv expected on Tuesday.
The amount of gas flowing to LNG export plants hit a record 10.2 bcfd on Tuesday as rising global prices over the past couple of months have prompted buyers in Europe and Asia to purchase more US gas.
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