NEW YORK: US natural gas futures edged down for a fifth day in a row on Friday on forecasts for milder weather next week and a mostly steady rise in output.
The declines came despite this week's increase in liquefied natural gas (LNG) exports to record highs.
Front-month gas futures fell 5.4 cents, or 1.8%, to settle at $2.888 per million British thermal units, their lowest since Oct. 19. That put the contract down for a fifth day in a row for the first time since April.
For the week, the contract lost 14% after rising around 64% during the prior six weeks.
The declines caused futures premiums for December 2021 over December 2020 and November 2021 over October 2021 to rise to their highest since April 2011.
It also cut the premium of March 2021 over April 2021 to a record low for a fourth day in a row. Traders use the March-April and October-November spreads to bet on changes in the weather. March-April is known as the widow maker.
Data provider Refinitiv said output in the Lower 48 US states averaged 89.4 billion cubic feet per day so far in November, up from a five-month low of 87.4 bcfd in October. That was still well below the all-time high of 95.4 bcfd in November 2019.
Refinitiv projected demand, including exports, would drop from an average of 96.4 bcfd this week to 91.8 bcfd next week as the weather turns milder, before jumping to 99.6 bcfd in two weeks with the coming of seasonally colder weather.
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