On Tuesday, US natural gas futures were little changed, erased earlier losses on midday.
Gas futures for November delivery slipped by 0.3% or 1.6 cents to close at USD5.992/mmBtu.
Earlier in the session, the prices had plunged by around 5% on the back of the rise in production, and the forecast for the milder temperature in November than normal.
Previously on Monday, the contract skyrocketed by 11.7% to the highest level since October 5.
So far in October, output in the US Lower 48 states has averaged 92.2 bcfd, according to Refinitiv. It was up from 91.1 bcfd in the previous month. In comparison, the record high was 95.4 bcfd in November 2019.
The country’s gas demand this week is at 89.2 bcfd but is estimated to increase to 92.4 bcfd on the back of colder temperatures.
The US has ample gas in storage for winter, strong production to meet domestic demand, and its liquefied natural gas (LNG) export plants were operating close to nameplate capacity. Hence, the country cannot produce more LNG for exports no matter how high the global prices are.
