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23.09.202602:17:40UTC+00US Natgas Prices Hit 11-Week High

US natural gas prices rose above $3.00/MMBtu, hitting their highest level since July 8, as forecasts for unseasonably hot autumn weather signaled stronger demand for gas-fired power generation. Above-average temperatures are expected across the South-Central US through October 6, likely prolonging air-conditioning use and increasing gas consumption.

At the same time, the storage surplus is narrowing. Late-summer heat has bolstered power-sector demand, helping to counteract strong production. Analysts estimate that inventories for the week ended September 18 were about 3% above the five-year average, down from a 3.7% surplus the previous week.

LNG exports remain robust as well. Average gas flows to the nine major US LNG export facilities have increased to 18 bcfd so far in September, up from 17.2 bcfd in August. Firm overseas demand is underpinning these exports, with buyers in Europe and Asia replenishing inventories ahead of winter amid disruptions to LNG shipments from the Persian Gulf.

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