U.S. Gas prices recover

U.S. Gas prices recover

On September 29, natural gas finished higher, reversing earlier losses. Prices had initially been pressured by forecasts of warmer-than-normal weather in the coming weeks, but later gained support from other factors — including data showing stronger export demand for U.S. natural gas.

According to EBW Analytics, the above-average warmth is expected to limit natural gas demand through the first half of October. Citing DTN’s temperature forecasts, EBW noted that U.S. storage is projected to grow by about 270 bcf between September 26 and October 16. This means that whenever colder weather eventually arrives, markets will be well supplied, which should help cushion any price spikes.

Now natural gas (XNGUSD) are trading at $3.39.

In Europe storage facilities across the EU have reached 82.5% capacity ahead of winter, according to Gas Infrastructure Europe (GIE). On September 28, EU countries injected 206 million cubic meters of gas into storage, while withdrawals declined to 28 million cubic meters. Total storage now stands at 90.9 billion cubic meters — the seventh-highest September level in the historical record.

Despite this progress, storage levels remain 6.9 percentage points below the five-year seasonal average and well under last year’s 94.2% mark for the same date. Under European Commission rules, member states must fill storage sites to at least 90% between October 1 and December 1 each year, though up to 10% flexibility is permitted under difficult conditions. These requirements are contributing to upward pressure on European gas prices.