US Natgas Prices Rise to Start Week

US natural gas futures rose toward $2.9/MMBtu, driven by expectations of increased demand as colder weather sets in and a dip in production.

As temperatures drop, gas consumption typically rises, contributing to higher prices.

Additionally, US LNG export activity has picked up, with daily gas flows to export plants rising to a 10-month high last Friday.

Natural gas exports to the seven major LNG export plants average 13.3 billion cubic feet per day (bcfd) so far in November, up from 13.1 bcfd in October, reflecting stronger demand for US natural gas abroad.

Additionally, natural gas production in the Lower 48 states decreased to 100.3 billion cubic feet per day (bcfd) in November from 101.3 bcfd in October.

Meanwhile, recent EIA data showed that US utilities added 42 billion cubic feet of gas to storage in the week ending November 8, leaving inventories 6.1% above the seasonal average.