Natural Gas Prices Plummet on Robust Production and Inventory Levels

US natural gas prices have dropped to around $2.66 per million British thermal units on Monday, marking a decline of more than 2% and reaching near three-month lows.

The downward pressure on prices is attributed to robust production and comfortable inventory levels in the US. According to an EIA report, energy firms injected 36 bcf of gas into storage in the week ended August 7, exceeding expectations of a 31 bcf build and surpassing the five-year average increase of 33 bcf.

Production in the Lower 48 states has averaged a record 111.3 bcfd so far in August, up from 110.7 bcfd in July, keeping inventories above their five-year average since March.