U.S. natural gas futures climbed to a more than two-month high on Tuesday, supported by forecasts that warmer-than-normal weather will persist through mid-October, which is expected to keep demand elevated.

Front-month, gas futures for November delivery on the New York Mercantile Exchange were up 4.7 cents, or 1.4% to $3.31 per million British thermal units (mmBtu) as of 9:42 a.m. ET, its highest level since July 21. The contract was up about 10% for the month so far.

“We did have some weather models that are trending more supportive… So, that’s indicating that we should see some higher power burns, the higher demand with the flat supply should reduce the amount of storage injections,” said Robert DiDona, president of Energy Ventures Analysis.

Meteorologists forecast the weather will remain mostly warmer than normal through at least October 14.

Financial firm LSEG projected average gas demand in the Lower 48 states, including exports, would be at 100.0 bcfd next week. The forecast was higher than LSEG’s outlook on Monday.

LSEG said average gas output in the Lower 48 states fell to 107.4 billion cubic feet per day so far in September, down from a record monthly high of 108.3 bcfd in August.

According to early estimates, analysts forecast energy firms injected 66 billion cubic feet (bcf) of gas into storage during the week ended September 26. That compares with an injection of 54 bcf during the same week last year and a five-year average increase of 85 bcf.

On the storm front, Imelda became the fourth hurricane of the 2025 Atlantic season on Tuesday ahead of its approach to Bermuda. The U.S. National Hurricane Center said Imelda is likely to remain a hurricane as it approaches the island on Wednesday.

Meanwhile, liquefied natural gas (LNG) will be European oil major Shell’s biggest contribution to the energy industry over the next decade in terms of value and as it seeks to cut emissions from fossil fuel production, CEO Wael Sawan said on Monday.
Source: Reuters