US natural gas futures declined for a second straight session on Tuesday, slipping to $3.15 per MMBtu, as Gulf Coast producers continued to bring production back online following Hurricane Isaias and warmer forecasts tempered early-season heating demand.
As of Monday, roughly 25% of natural gas output in the region remained shut in, according to the US Marine Minerals Administration. The broader impact on supply, however, was limited because offshore production represents only about 2% of total marketed US gas output.
Weather models are calling for above-average temperatures across the eastern United States from October 22–26, a trend that could postpone the typical seasonal increase in heating-related consumption.
Prices also came under pressure from softer LNG activity. Gas deliveries to the nine major US export terminals declined to 17.4 bcfd in October, down from 17.9 bcfd in September. At the same time, Lower 48 production eased to 110.7 bcfd this month, compared with record output of 113.3 bcfd in August and September, reflecting hurricane-driven shut-ins, force majeure declarations, and pipeline disruptions in Kentucky, Texas, West Virginia, and other regions.