FX.co ★ Natural Gas Halts Pullback

U.S. natural gas futures have edged just above $3.10 per MMBtu, reversing a significant decline that had reached a three-month low amid short covering activities and a softer-than-expected report on weekly storage levels. According to data from the Energy Information Administration (EIA), 23 billion cubic feet (bcf) were added to storage last week, which is at the lower end of market expectations. Nevertheless, predictions of milder summer heat in North America and robust production levels have continued to exert downward pressure on prices this month, as gas storage levels remain about 6% above the seasonal average. Reports from LSEG indicate that the average natural gas output in the Lower 48 states climbed to 107.2 billion cubic feet per day (bcfd) in July, surpassing June's record of 106.4 bcfd. Concurrently, gas deliveries to the eight major U.S. liquefied natural gas (LNG) export facilities have increased to 15.8 bcfd in July, compared to June, as various units gradually resume operations following maintenance and unexpected outages.