That price dip came despite forecasts for colder weather and higher heating demand over the next two weeks, rising liquefied natural gas (LNG) exports, and a drop in output as producers shut wells ahead of Hurricane Zeta, which is expected to smash into eastern Louisiana later Wednesday.
On their last day as the front-month, gas futures for November delivery fell 2.3 cents, or 0.8%, to settle at $2.996 per million British thermal units (mmBtu). On Monday, the contract closed at its highest since January 2019.
December futures, which will soon be the front-month, meanwhile, lost about two cents to close at $3.29 per mmBtu, which would also be the highest since January 2019.
Oil prices fell over 5% as surging coronavirus infections in the United States and Europe raised the specter of renewed lockdowns.
Data provider Refinitiv said output in the Lower 48 U.S. states dropped to 84.8 billion cubic feet per day (bcfd) on Tuesday, down 3.8 bcfd over the last five days as Gulf Coast producers shut wells for Zeta.
U.S. regulators said energy firms shut about 1.5 bcfd, or 55%, of offshore Gulf of Mexico gas production.
With colder weather coming, Refinitiv projected demand, including exports, would rise from an average of 97.7 bcfd this week to 98.2 bcfd next week.
The amount of gas flowing to LNG export plants averaged 7.4 bcfd so far in October. That would be the most in a month since April and puts exports on track to rise for a third month in a row for the first time since February, when feedgas hit a record 8.7 bcfd as rising global gas prices prompted buyers to purchase more U.S. gas. 29dk2902l