Natural Gas Prices Plunge Below $2.85 Amid Storage and Production Pressure
Natural gas prices continue to decline, trading around $2.88/MMBtu on September 10. The price has fallen below all major moving averages and shifted from a bullish to bearish structure.
The pressure on prices increased after the September EIA STEO revealed that U.S. inventories are expected to reach 3.969 Tcf by October 31, which is 5% above the five-year average.
Strong production and rising supply from the Permian and Haynesville regions remain the main reasons for this trend. The market is waiting for the new weekly EIA storage report due at 10:30 ET on September 10.
If the new build comes in above the seasonal norm, pressure on Henry Hub could intensify further. However, a weaker storage increase would give the market a chance for a technical rebound.