Traders pushed the NYMEX front month up $0.14 USD/MMBtu or 4.5% to settle at $3.50 USD/MMBtu. This is the highest front-month settlement since July 15th. The upward movement was supported by reduced production volumes (4-month low today) and initial EIA inventory predictions indicating a lower-than-average storage build this week. Lower LNG flows and warmer-than-normal forecasts contradicted the movement.

Canadian gas exports are currently at their lowest volumes since May, with an export volume of 4,925 MMcf/d. Maintenance at NGTL’s ABBC pipeline, expected to finish by October 10th, is reducing flows into the northwestern US. In eastern Canada, flows through TC’s GLGT into Dawn are at near max volume (1,400 MMcf/d). This gas is sourced from Alberta and then transported across the midwestern states to primarily supply Michigan and Ontario. Much of this gas ordinarily stays in the US instead of returning to Canada. (PB)