FX.co ★ US Natgas Prices Fall to 9-Week Low

U.S. natural gas futures dropped over 3% to $3.15 per MMBtu, marking the lowest point since May 19. This decline is attributed to near-record production levels and forecasts for milder weather conditions than previously anticipated. Despite the fact that temperatures are expected to stay above average until at least August 6, the updated forecast predicts less severe heat, which is likely to decrease immediate cooling demand. In light of the summer heat, analysts predict that record-high production will bolster robust storage injections. Current stockpiles are approximately 6% above the typical seasonal levels. Data from LSEG indicates that the average daily natural gas output in the Lower 48 states has risen to 107.2 billion cubic feet in July, surpassing June's record of 106.4 billion cubic feet per day. Concurrently, gas flows to the United States' eight major LNG export facilities have increased to 15.8 billion cubic feet per day so far in July, up from June. This uptick is due in part to some units gradually resuming operations following maintenance and unplanned outages.