US Natgas Prices Hit Three-Week High on Hot Weather Forecasts

US natural gas prices have surged to a three-week high, reaching over $2.80 per million British thermal units. This increase is attributed to forecasts indicating hotter weather across much of the country.

The short-term temperature outlook has turned more bullish, with Houston temperatures expected to average around 100°F (38°C) from August 20 to 23. Warmer-than-normal conditions are forecasted through early September.

However, abundant supply remains a key constraint on further gains. The Lower-48 production averaged around 111.5 billion cubic feet per day so far in August, above July's monthly record of 110.7 bcfd.