US natural gas futures rise as production declines and cooling forecasts provide support

U.S. natural gas futures prices rose as weekend natural gas production declined, with the most noticeable reduction in the Appalachian shale gas region. The drop in supply suggests that producers may be actively cutting output amid persistently low natural gas prices. Additionally, slightly cooler weather forecasts indicate that, with the onset of the winter heating season, demand for natural gas used for heating and power generation may increase. However, temperatures across most of the United States are expected to remain above seasonal averages in the coming weeks, likely limiting the potential for further natural gas price increases and offsetting the marginal boost from heating demand. Moreover, the volume of natural gas flowing to LNG export terminals has decreased, leaving more natural gas in the domestic U.S. market and putting downward pressure on prices.