Natural gas futures drop 2.6% to $3.198 per MMBtu, biggest fall in two weeks
Production climbs to 111.4 BCF/D, up 3% from a year ago, while LNG exports rise 9.1% on the week to 19.6 BCF/D
Published
LNG export flows rose 9.1% from the prior week to 19.6 BCF/D. That followed a 12% increase the week before, meaning exports have been accelerating for two straight weeks.
Offshore output shut-ins had fallen from 59% to 25% as of October 12. The latest production reading now shows supply not just recovering from those shut-ins but running above year-ago levels, a larger supply overhang than the October 12 update had suggested.
The pace of LNG export growth has not been enough to absorb that extra supply. With shut-ins largely resolved, attention in the market turns to the temperature outlook for October 22-26, which stands as the next factor likely to move heating demand and, with it, prices.