US natural gas futures held steady on Tuesday as bearish forecasts for milder weather and less demand over the next two weeks than previously expected offset a bullish drop in daily output
US natural gas futures held steady on Tuesday as bearish forecasts for milder weather and less demand over the next two weeks than previously expected offset a bullish drop in daily output to an eight-month low.
Front-month gas futures for November delivery on the New York Mercantile Exchange (NYMEX) rose 0.2 cent, or 0.1%, to $3.169 per million British thermal units.
Financial firm LSEG said average gas output in the US Lower 48 states slid from record highs of 113.3 bcfd in August and September to 110.6 bcfd so far in October.
That drop in average output so far in October was due to a combination of Hurricane Isaias production shut-ins and force majeure incidents and problems on pipelines in Kentucky, Texas, West Virginia and elsewhere over the past month or so.
On a daily basis, LSEG said output was on track to drop to an eight-month low of around 107.1 bcfd on Tuesday, even as production slowly returns in the Gulf of Mexico after Isaias.
The US Marine Minerals Administration, which oversees development of offshore energy, said just about 25% or 0.5 bcfd of offshore Gulf of Mexico gas was still shut-in on Monday, down from a peak of
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