Record Heat Fails to Boost US Natural Gas Prices Amid Abundant Supplies

Natural gas prices at the Henry Hub averaged around $2.93 per million British thermal units from June through August, down 6% from the same period last year.

The contiguous 48 US states recorded their hottest July on record, with temperatures averaging 77 degrees Fahrenheit.

Solar and wind power met a significant share of the additional electricity demand driven by increased air-conditioning use.

Natural gas-fired electricity generation increased by around 7.5 billion kilowatt-hours, while solar power generation rose by an estimated 19.4 billion kilowatt-hours and wind generation added another 9.3 billion kilowatt-hours.

A abundant supply boosted natural gas inventories, which entered the injection season with 1.906 trillion cubic feet of working gas in storage, 4% above the previous five-year average.