Natural Gas Prices Ease on Record US Production and Soft Demand Forecasts
Natural gas prices in India eased on Tuesday as record US production and forecasts of softer demand next week put pressure on prices. The Natural Gas benchmark settled 0.43% lower at 277.8, weighed down by technical selling and comfortable storage levels.
The US has seen a rise in natural gas output, averaging 112.9 billion cubic feet per day so far in September, up from the August monthly high of 112.2 bcfd. Mild spring weather and strong production have kept inventories above the five-year average since March.
Meteorologists expect mostly warmer-than-normal weather through September 18, supporting elevated power-sector gas consumption for air-conditioning. However, forecasts predict total Lower 48 demand including exports to decline from 112.7 bcfd this week to 108.8 bcfd next week.
The Energy Information Administration (EIA) expects US dry gas production to rise from 107.6 bcfd in 2025 to 116.0 bcfd in 2027, while domestic consumption is forecast at 94.8 bcfd in 2027. LNG exports are projected to reach 18.6 bcfd in 2027.
Techincally, natural gas prices are facing immediate support at 272.7, and a break below this level could extend the decline toward 267.5.