Henry Hub Natural Gas Price Falls to $2.77 Amid Surplus Storage

The Henry Hub natural gas price has been trading at $2.77 per million British thermal units, down 0.80% on the session and 4.33% over the past month. This level is 1.30% below where it traded a year ago.

The market's inability to hold a bid can be attributed to arithmetic. Working gas in storage reached 3,117 billion cubic feet as of July 31, which is 195 Bcf above the five-year average of 2,922 Bcf, a surplus of 6.7%. Lower 48 dry gas production averaged a record 111.2 Bcf/d during August, up from 110.7 Bcf/d in July.

Despite bullish inputs such as daily flows to US LNG export plants recovering toward a one-month high of 17.9 Bcf/d and weather forecasts pointing to continued above-normal temperatures through August 25, the market remains bearish due to the surplus in storage.