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US Natgas Extends Decline On Record Production


US Natgas extends decline on high production and easing domestic demand.

  • US Natgas OCT 22 down -1.9% at 7.99$/mmbtu
  • Front month has fallen 20% from the peak near 10$/mmbtu on Aug 23.
  • Lower 48 dry gas production has been above 100bcf/d all week and was estimated at a record high of 100.9bcf/d yesterday.
  • Milder temperatures and forecast of cooling rain have eased demand from about 74bcf last week to below 69bcf/d today. The forecast suggests slightly warmer weather will persist for much of the US although the west coast will be back near normal in the 8-14 day period.
  • Deliveries to US LNG export terminals have soften from earlier in the week back to 11.2bcf/d while Mexico exports are unchanged at 6.7bcf/d.

Source: Bloomberg

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