Natural Gas Prices Tug Between Hot Weather and Strong Supply

Natural gas prices in the US have been fluctuating around $2.80 per million British thermal units as investors weigh hotter weather forecasts against strong supply levels.

Forecasts now point to significantly hotter conditions across the central and southern US, which could boost electricity demand as consumers increase air-conditioning use and raise gas consumption by power generators.

The flows to US LNG export terminals on the Gulf Coast have climbed to their highest level in more than a month, with some facilities completing seasonal maintenance and reducing gas available to the domestic market.

However, elevated inventories continue to limit the upside, with storage expected to remain 6.6% above the five-year average for the week ending August 7.