Nat-Gas Prices Slip Amid Robust Storage Projections

Natural gas prices slipped on Tuesday after a two-week high, closing down 0.97% to $2.27 per million British thermal units (MMBtu) in September Nymex futures.

The decline came despite forecasts for hotter US weather, which could boost demand from electricity providers for air conditioning use.

However, the Energy Information Administration (EIA) projected that US nat-gas storage levels will swell to 3,985 billion cubic feet (bcf) at the end of October, the highest level in 10 years and 5% above the five-year average.

This surplus could put downward pressure on prices, as it signals robust supplies. The EIA's forecast also suggests that US nat-gas production will continue to rise, with a new estimate of 111.2 bcf/day for 2026.