FX.co ★ US Natgas Prices Fall on Larger-than-Normal Storage Build

US natural gas futures fell more than 2%, dropping below $3.4 per MMBtu, following an unexpectedly large weekly storage report. According to the EIA, the week ending October 17 saw an injection of 87 billion cubic feet (bcf), exceeding the market's prediction of 83 bcf. This increase, prompted by milder weather conditions, was above last year's 79 bcf rise and surpassed the five-year average injection of 77 bcf. As a result, total inventories are now 0.9% higher than this time last year and 4.5% above the five-year average, suggesting a robust supply. Earlier this year, record levels of production supported substantial storage injections, but recent figures indicate a slight decline in output. In contrast, demand from LNG export facilities has climbed to a new monthly record. Looking forward, weather forecasts predict that temperatures across the U.S. will remain near normal through November 7.