Gas prices in US fall to 7-day low

US natural gas prices fell about 4% to a 7-day low amid forecasts of less cool weather in late November, Report informs.

Trading in the market still showed volatility.

Market participants also remained focused on rumors that Freeport LNG terminal operations may not resume in November, analysts said. Freeport has not yet provided the regulator with a plan to reopen the terminal. As soon as the terminal resumes its work, the demand for gas should increase.

The pressure on prices was also exerted by forecasts of a more significant increase in gas reserves than usual in the reporting and next week. With a strong increase in inventories, their total volume may return to average levels for the first time since January 2022.

Near-term natural gas futures on the NYMEX closed down 27.3 cents, or 4.4%, at $5.865 per million Btu. This is the minimum closing since November 1.

Later in the day, the Energy Information Administration (EIA) of the US Department of Energy will publish a weekly report on gas inventories. Analysts expect stocks to rise more than usual during the reporting week.

Analysts polled by Reuters on average believe that gas reserves in US underground storage facilities rose by 84 billion cubic feet in the week of October 29-November 4. According to the results of the same week last year, reserves increased by 15 billion cubic feet, and the average 5-year value for the reporting period is +20 billion cubic feet.