Natural gas prices closed higher on October Nymex on Monday, rising by 1.63% to settle at +0.047. This increase is attributed to forecasts predicting triple-digit temperatures across large parts of the US, driving up demand for natural gas as electricity providers prepare for heightened air conditioning usage from August 31 to September 5.
Despite the price gains, production levels are also noteworthy, with US dry gas production reaching approximately 115.0 billion cubic feet per day (bcf/day), a near-record high. Demand in the lower-48 states on the same day was recorded at 78.4 bcf/day, marking a year-over-year increase of 17.8%. Additionally, LNG net flows to US export terminals were estimated at 19.6 bcf/day.
The US Energy Information Administration (EIA) predicts that natural gas storage levels will reach 3,985 bcf by the end of October, the highest in a decade and 5% above the five-year average. Speculation about a strong El Niño may also impact heating demand in the coming months, particularly in the Northern Hemisphere.
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