Natural gas prices in the United States rose more than 4 percent on Monday, reaching $3.13 per million BTU. This is the highest price level since October 15, driven by forecasts of a severe cold wave that contributes to increased heating demand.
Impact of Weather Conditions on Prices
According to forecasts, over 160 million Americans may face below-average temperatures until November 14, which is significantly different from the unusually warm conditions predicted earlier in the week. These temperature changes will be particularly noticeable in the eastern United States, the Great Lakes, and the Ohio Valley.
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Factors Influencing Supply
Supply-related factors have also helped support prices. According to a recent report from the U.S. Energy Information Administration (EIA), natural gas storage for the week ending October 30 was 77 billion cubic feet (Bcf), which was lower than forecasts. Meanwhile, total natural gas inventory has reached 3.801 trillion cubic feet, which is 2.8 percent less than last year and 1.4 percent more than the five-year average.
Natural gas production in the United States has averaged 111.2 billion cubic feet per day in November, down from 113.4 billion cubic feet in October. Liquefied natural gas (LNG) export flows have also slightly decreased, although international demand for American shipments remains strong, especially amid geopolitical instability in global energy markets.
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