US natgas futures fall 3% as temperatures moderate, oil prices ease

By Reuters News

By Vedika Thorat

- US natural gas futures fell more than 3% on Monday as forecasts for milder temperatures and lower oil prices weighed on the market after weeks of weather-driven strength.

Front-month gas futures for October delivery on the New York Mercantile Exchange settled down by 7.6 cents, or 2.6%, at $2.836 per million British thermal units.

"The weather has moderated. And typically, for natural gas, weather plays a key role, especially short-term. And so with the moderating weather, moderating temperatures, the market is moving off a little bit here," said Thomas Saal, senior vice president at StoneX.

Meteorologists forecast weather would remain mostly warmer than normal through October 4.

Financial firm LSEG said average gas output in the US Lower 48 states rose to 113.1 billion cubic feet per day (bcfd) so far in September, up from a monthly record high of 112.2 bcfd in August.

LSEG said average gas demand in the Lower 48 states, including exports, is expected to slide from 107.6 bcfd this week to 104.8 bcfd next week.

Analysts predicted the amount of gas in storage slid to 2.9% above normal during the week ended September 18, down from 3.7% above normal in the previous week, according to early estimates ahead of Thursday's weekly federal inventory report. EIA/GAS NGAS/POLL

Meanwhile, oil prices slid towards the psychological threshold of $100 a barrel and to their lowest in 11 days as investors hoped for diplomatic progress on the Iran war due to this week's United Nations meeting, and eyed a partial recovery in shipments from Saudi Arabia. O/R

Average gas flows to the nine big US LNG export plants rose to 18.1 bcfd so far in September, up from 17.2 bcfd in August, but remained short of the monthly record high of 18.8 bcfd in April.

Dutch and British gas prices fell, also on hopes of progress on the Iran conflict, and with temperatures expected to be unseasonally mild next week.NG/EU

Week ended Sep 18 Forecast

Week ended Sep 11 Actual

Year ago Sep 18

Five-year average (2021-2025) Sep 18

US weekly natgas storage change (bcf):

+51

+44

+77

+76

US total natgas in storage (bcf):

3,349

3,298

3,497

3,256

US total storage versus 5-year average

+2.9%

+3.7%

Global Gas Benchmark Futures ($ per mmBtu)

Current Day

Prior Day

This Month Last Year

Prior Year Average 2025

Five-Year Average (2021-2025)

Henry Hub

2.91

2.85

3.01

3.62

3.79

Title Transfer Facility (TTF)

74.32

26.52

11.13

11.94

18.51

Japan-Korea Marker (JKM)

25.64

26.75

11.32

12.24

18.12

LSEG US Global Forecast System (GFS) Heating, Cooling and Total Degree Days

Total Two-Week Forecast

Current Day

Prior Day

Prior Year

10-Year Norm

30-Year Norm

US GFS Heating Degree Days (HDD)

47

35

11

43

55

US GFS Cooling Degree Days (CDD)

106

119

102

86

71

US GFS Total Degree Days (TDD)

153

154

113

129

126

LSEG US Weekly GFS Supply and Demand Forecasts

Prior Week

Current Week

Next Week

This Week Last Year

Five-Year (2021-2025) Average for Month

US Supply (bcfd)

US Lower 48 Dry Production

112.9

112.5

112.9

107.2

101.5

US Imports from Canada

6.6

7.0

7.5

N/A

7.7

US LNG Imports

0.0

0.0

0.0

0.0

0.0

Total US Supply

119.5

119.5

120.3

N/A

109.2

US Demand (bcfd)

US Exports to Canada

2.4

2.6

2.5

N/A

2.3

US Exports to Mexico

7.4

7.5

7.7

N/A

6.8

US LNG Export Feedgas

18.1

17.5

17.7

16.0

12.6

US Commercial

5.0

5.3

5.4

4.7

5.0

US Residential

3.8

4.3

4.5

4.0

3.9

US Power Plant

43.3

40.6

37.1

40.9

38.4

US Industrial

21.9

22.1

22.1

22.0

22.1

US Plant Fuel

5.6

5.6

5.6

5.6

5.3

US Pipe Distribution

2.2

2.1

2.0

2.2

2.9

US Vehicle Fuel

0.1

0.1

0.1

0.1

0.2

Total US Consumption

81.9

80.1

76.9

79.5

77.8

Total US Demand

109.8

107.6

104.8

N/A

99.5

N/A = Not Available

US Northwest River Forecast Center (NWRFC) at The Dalles Dam (fiscal year ending September 30)

2026 Current Day % of Normal Forecast

2026 Prior Day % of Normal Forecast

2025 % of Normal Actual

2024 % of Normal Actual

2023 % of Normal Actual

Apr-Sep

83

83

76

74

83

Jan-Jul

90

90

78

76

77

Oct-Sep

93

93

80

77

76

US weekly power generation percent by fuel - EIA

Week ended Sep 25

Week ended Sep 18

2025

2024

2023

Wind

8

10

11

11

10

Solar

8

8

6

5

4

Hydro

4

4

6

6

6

Other

1

1

1

1

2

Petroleum

0

0

0

0

0

Natural Gas

43

43

40

42

41

Coal

17

17

18

16

17

Nuclear

18

17

18

19

19

SNL US Natural Gas Next-Day Prices ($ per mmBtu)

Hub

Current Day

Prior Day

This Month Last Year

Prior Year Average 2025

Five-Year Average (2021-2025)

Henry Hub

2.97

2.90

2.97

3.52

3.72

Transco Z6 New York

1.26

1.75

1.85

3.53

3.56

PG&E Citygate

3.44

3.60

3.74

3.42

5.47

Eastern Gas (formerly Dominion South)

1.30

1.64

1.75

2.79

2.96

Chicago Citygate

2.63

2.72

2.81

3.23

3.60

Algonquin Citygate

1.50

1.50

2.18

6.08

5.04

SoCal Citygate

1.50

3.65

3.11

3.60

5.71

Waha Hub

1.78

1.93

-0.06

1.03

2.88

AECO

1.58

1.17

0.22

1.13

2.13

Intercontinental Exchange (ICE) US Power Next-Day Prices ($ per megawatt-hour)

Hub

Current Day

Prior Day

This Month Last Year

Prior Year Average 2025

Five-Year Average (2021-2025)

New England

40.29

55.83

38.84

77.12

61.67

PJM West

74.69

229.74

51.24

60.23

54.47

Mid-Columbia (Mid C)

54.11

51.47

56.16

44.81

68.96

Palo Verde

37.92

38.50

38.04

34.82

59.94

South Path-15 (SP-15)

33.48

34.01

36.05

28.44

53.02

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