US Natural Gas Falls to Over 2-Week Low

US natural gas futures fell 3% to $6.5/MMBtu on Friday, the lowest since November 15th and were set for an over 11% weekly fall, as forecasts for less cold weather and lower demand lower should allow utilities to leave more gas into storage.

The latest EIA report showed US utilities added 81 bcf last week, leaving gas stockpiles 2.4% below the five-year average for this time of year.

Also, average gas output in the US Lower 48 states rose to a record 99.5 bcfd in November, up from 99.4 bcfd in October.

Elsewhere, investors continue to monitor the situation at the Freeport LNG plant.

The plant's restart has been delayed from November to mid-December.

Still, a request to restart the plant needs to be submitted, raising questions about another delay, which would mean more gas in the domestic market.

At the same time, the US government is stepping up efforts to reduce the risk of a railroad worker strike that could disrupt coal deliveries and force power generators to burn more gas.