US natural gas prices are expected to trade steady to down in the near term amid weak fundamentals. Weather forecasters called for a mild weather in October. Generally, demand for the commodity picksup this time of the year as temparature moves up. Higher than expected natural gas stock-piles, a recovery in supply are likely to limit gains in the commodity prices.

Tropical storm Karen was seen loosing its strength on Saturday and was headed towards the central Gulf Coast. However, weather forecasters expect that it would bring heavy rains followed by floods to low-lying areas. Earlier, it was expected that the storm may disrupt natural gas supply by turning a hurricane.

DJ basin production has increased by 70 MMcf/d and is almost back to preflooding levels. Natural gas in the basin would continue to expand as liquids drilling activities rise.

In the Northeast, Mark West has announced that the Mobley processing plant in Wetzel County, West Virginia, will return to service by mid-October. The plant is under repair after a landslide caused an NGL pipeline connected to it to rupture. Production in the Northeast remains weaker than we expected, as the Majorsville processing plant has just entered into maintenance, with receipts from the plant dropping to zero as of Wednesday, said London based Barclays in an e-mailed report.

US working gas in storage was 3,487 Bcf as of Friday, September 27, 2013, according to Enegy Information Administration (EIA) estimates. This represents a net increase of 101 Bcf from the previous week. Stocks were 155 Bcf less than last year at this time and 49 Bcf above the 5-year average of 3,438 Bcf.

In the East Region, stocks were 106 Bcf below the 5-year average following net injections of 58 Bcf. Stocks in the Producing Region were 102 Bcf above the 5-year average of 1,056 Bcf after a net injection of 33 Bcf. Stocks in the West Region were 52 Bcf above the 5-year average after a net addition of 10 Bcf. At 3,487 Bcf, total working gas is within the 5-year historical range.
Source: Barclays