Nat-Gas Prices Rise as US Weather Forecasts Turn Colder

Core Insights - Natural gas prices in the US have increased for the third consecutive session, reaching a 1.5-week high due to forecasts of colder weather boosting heating demand [2] - US natural gas production is at a near-record high, which may exert downward pressure on prices [4] Production and Demand - US dry gas production was reported at 104.6 billion cubic feet per day (bcf/day), reflecting a year-over-year increase of 1.1% [3] - Demand for natural gas in the lower-48 states was 71.5 bcf/day, up 4.9% year-over-year [3] - The number of active US natural gas drilling rigs increased to 121, just below a two-year high [7] Inventory and Exports - Natural gas inventories rose by 80 billion cubic feet (bcf) for the week ending October 10, which was below market expectations and the five-year average [6] - US natural gas pipeline exports to Mexico reached a record 7.5 bcf/day in May [3] Electricity Generation - US electricity output increased by 5.1% year-over-year to 77,390 gigawatt hours (GWh) for the week ending October 11 [5] - Over the past 52 weeks, electricity output rose by 2.86% year-over-year to 4,277,958 GWh [5]