US Natural Gas Futures Surge Over 12% Amid Colder Forecasts and Rising Demand

US natural gas futures prices have surged significantly due to forecasts of much colder weather driving higher heating demand and a decline in natural gas output in October. Front-month NYMEX natural gas futures rose sharply, with notable increases above 8%, reaching levels not seen since early October. The Lower 48 states' gas production has decreased from recent record highs, while flows to LNG export plants have hit near-record levels, contributing to tightening supply. Despite tropical weather activity in the Caribbean, expected disruptions to US Gulf Coast production and LNG exports are uncertain and could influence prices variably. Additionally, US natural gas storage remains about 4% above normal for this time of year, reflecting earlier high production. These market dynamics underscore the sensitivity of natural gas prices to weather forecasts, production changes, and export demands.