Why U.S. Gas Got Cheaper While Europe Paid More
U.S. natural gas futures fell about 3% on Oct. 12 on a lower demand forecast. Gas for immediate delivery in Pennsylvania fell to its lowest since November 2020. Pipeline & Gas Journal
The fall came after a rise the week before. The November contract, a set price today for gas delivered in November, rose 1.6% to $3.22 per mmBtu on Oct. 9. MmBtu is a unit for gas energy. It ended that week up 6.1% after making back the prior day's losses. Wall Street Journal
For the main U.S. price at Henry Hub in Louisiana, CME Group showed 3.192 on Oct. 16, down 0.044 or 1.36%, on volume of 12,797. CME Group On Oct. 15 it was 3.212, down 0.024 or 0.74%, on volume of 479. CME Group Another page at 07:30:50 AM CT on Oct. 16 showed 3.122, down 0.114 or 3.52%, on volume of 37,120. CME lists it under code NGX26 with estimated total volume of 698,355. A delayed front-month price stood at $3.26 on Oct. 15, up $0.06 or 1.84%. Reuters
The cheapest local prices were in Appalachia. Futures started the week of Sept. 8 lower as cool late-September weather was expected to cut power burn, gas used to make power. Wall Street Journal Earlier in the storage-filling season, futures eased as daily feedgas, gas sent to export plants, fell to a four-month low. Reuters Stocks stay high in the shoulder season, the mild weeks between summer and winter. The EIA forecast a build of 328 Bcf, or billion cubic feet, in October to 3,850 Bcf by end-October 2026. EIA Think of it like a full pantry before winter. In Europe, the main gas price jumped more than 150% in 2026, with stored reserves at lows. Reuters
The broader context here is two different markets. U.S. futures near $3.20 with low Pennsylvania prices and storage headed to 3,850 Bcf suggest local pipeline or demand limits, not a national shortage. High stocks weaken the effect of short weather shifts on prices. Europe, up more than 150% with low stocks, is paying up for extra gas. Watch October storage gains against that 328 Bcf forecast, any pickup in export flows from the June low, and whether weak Appalachian prices pull down Henry Hub or stay local. That explains the jumpy trade, a 6.1% weekly gain then a 3% drop on lower demand.
