As of 1:50 p.m. EDT, spot prices for natural gas were trading up $ 0.241 MMBtu (+ 9.89%) to $ 2.679.
While some reports suggest colder temperatures in the Midwest were responsible for soaring natural gas prices, NatGasWeather predicted national demand for the fuel would be moderate on Monday and low the rest of the week due to very hot temperatures. in the rest of the United States. So while demand is expected to increase in the Great Lakes region, nationally, demand for natural gas is determined to remain weak for the remainder of the week.
According to the Energy Information Administration, natural gas inventories are still 405 billion cubic feet above the five-year average.
Production, however, is on the decline, with total output of 86.8 billion cubic feet per day for the first few days of October, from an already four-month low in September of 87.2 billion cubic feet per day. , according to data from Refinitiv. Meanwhile, LNG exports have averaged 7.1 billion cubic feet so far this month – an increase from the 5.7 billion cubic feet exported last month – atypically low due to interruptions of ships in stormy Gulf ports.
Traders are now also betting that production could fall further this week, as another hurricane heads for the Gulf of Mexico – this time it’s the Tropical Storm Delta that the market needs to watch. Delta is expected to strike between Lousiana and Florida next Friday.
By Julianne Geiger for OilUSD
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