US Natgas Prices Fall to 14-Week Low Ahead of Storage Report
US natural gas prices have dropped to their lowest level in 14 weeks ahead of a report on storage levels, according to recent data. Front-month gas futures for September delivery on the New York Mercantile Exchange fell by 2.6 cents, or 1%, to $2.662 per million British thermal units (mmBtu). This puts the contract on track for its lowest close since April 29.
Analysts forecast that energy firms added 31 billion cubic feet of gas to storage during the week ended July 31, compared to an increase of 13 bcf during the same week last year and a five-year average increase of 23 bcf. Despite record output and mild spring weather allowing energy firms to keep inventory levels higher than usual since March, gas inventories have remained in surplus despite weeks of above-normal temperatures this summer.
Financial firm LSEG reported that average gas output in the US Lower 48 states eased to 110.6 billion cubic feet per day (bcfd) so far in August, from a monthly record high of 110.7 bcfd in July. Gas demand is expected to rise, with LSEG projecting an increase from 112.2 bcfd this week to 115.2 bcfd next week.