Nat-Gas Prices Plummet on Bigger US Supplies and Cooler Temps

Natural gas prices took a hit on Tuesday due to larger-than-expected US supplies and forecasts of cooler temperatures, which could reduce electricity demand for air conditioning.

The Hugh Brinson pipeline, operated by Energy Transfer, will reach its full transportation capacity of 1.5 billion cubic feet per day (bcf/day) by September 1, increasing gas flows from the Permian Basin to Henry Hub in Louisiana and boosting domestic supplies.

Forecasts also shifted cooler, with below-average temperatures expected in the Midwest and Northeast through August 18, according to the Commodity Weather Group. This could lead to reduced natural gas demand for electricity generation.