Natural gas concluded the trading session with a decline of 1.32%, settling at Rs 305.8. This decrease can be attributed to elevated domestic storage levels, which have momentarily overshadowed anticipations of increased heating demand and ongoing supply constraints in international markets. However, further downside remained constrained by anticipations of heightened gas flows to liquefied natural gas export facilities, including Freeport in Texas and Cove Point in Maryland. Tropical Storm Isaias was projected to intensify into a hurricane prior to its approach to the Gulf Coast, prompting apprehensions regarding possible interruptions to energy infrastructure.
Average gas production in the United States decreased from peak levels of 113.3 billion cubic feet per day in August and September to 111.5 billion cubic feet per day in October, influenced in part by pipeline disruptions and operational challenges. Meanwhile, gas demand, including exports, is anticipated to decrease from 105.4 billion cubic feet per day this week to 104.1 billion cubic feet per day next week. Average gas flows to nine major United States liquefied natural gas export plants decreased to 16.9 billion cubic feet per day in October, down from 17.9 billion cubic feet per day in September and a peak of 18.8 billion cubic feet per day in April.
United States energy companies added 85 billion cubic feet to storage during the week ended October 2, 2026, surpassing the preliminary estimate of 79 billion cubic feet. Total inventories increased to 3.500 trillion cubic feet, remaining 3.6% below the corresponding period last year. The Energy Information Administration projected dry gas production to increase from 107.6 billion cubic feet per day in 2025 to 112.2 billion in 2026 and 116.1 billion in 2027. Domestic consumption is projected to rise from 91.9 billion cubic feet per day in 2025 to 92.4 billion in 2026, and further to 93.8 billion in 2027.
Liquefied natural gas exports are projected to attain 17.6 billion cubic feet per day by 2026, with an anticipated increase to 18.6 billion in 2027. Natural gas is currently experiencing renewed selling pressure, as evidenced by a price decline of Rs. 4.1. Concurrently, open interest has risen by 1.81% to reach 30,277 contracts, suggesting a further inclination toward bearish positioning. Immediate support is positioned at Rs 299, succeeded by Rs 292.1. Resistance is positioned at Rs 315.8, and a sustained movement beyond this threshold may facilitate a recovery toward Rs 325.7.
