EIA Cuts Q3 Natural Gas Forecast Amid Record Production

Natural gas futures prices have been stuck in a tight range between $2.77 and $3.00, with the EIA reducing its Q3 forecast to $2.87 per MMBtu.

The recent heat wave has failed to drive up prices due to record-high production levels, which are running at 111.2 billion cubic feet per day in the Lower 48 states.

The storage surplus is also a significant factor, with end-October stockpiles projected at 3,985 Bcf, 5% above normal and the largest cushion heading into winter in a decade.

The supply overhang is expected to persist due to strong production and declining core demand, with LNG feedgas demand falling to 16.9 Bcf/d from 17.2 Bcf/d in July.