Natural Gas Prices Plummet to 3-Month Low Amid Record Storage Build
US natural gas prices plummeted to their lowest level in over three months due to an unprecedented storage build. The Energy Information Administration's (EIA) report showed that energy firms injected a massive 33 billion cubic feet of gas into storage in the week ended July 31, exceeding both last year's increase and the five-year average.
This is on top of record-high production levels, with Lower 48 dry gas output averaging 110.6 billion cubic feet per day (bcfd) so far in August. LNG feedgas demand has also weakened, falling to 16.9 bcfd this month from 17.2 bcfd in July.
Forecasts point to above-normal temperatures through August 21, which might have been expected to boost demand for natural gas. However, the supply conditions continue to outweigh any potential support from weather-driven demand.