Natural Gas Futures Plummet on Record Production and Surging Inventories

Natural gas futures have hit a three-month low at $2.65 per MMBtu, down 17.36% in a month on a 33 Bcf build.

The market has been in a downtrend since July 30 when prices declined below $2.70, and the short-term range has been between $3.375 to $2.799.

Lower 48 dry gas production averages 110.6 Bcf/d, while LNG feedgas demand fell to 16.9 Bcf/d.

The dislocation in prices is evident when comparing the US market with Europe's, where Dutch TTF trades near $19/MMBtu, a 7.3x spread from the US price.