Commodities
US NatGas Prices Plummet Amid Record Production and Ample Inventories
US natural gas prices fell to around $2.74/MMBtu on Tuesday, reversing a two-day gain as supply pressure from strong production and ample inventories weighed on the market.
The Lower 48 states saw record output in August, averaging 111.5 bcfd, up from 110.7 bcfd in July. This added to supply pressure as gas inventories are 6.7% above their five-year seasonal average.
Meanwhile, gas flows to the nine major LNG export facilities eased to 17.1 bcfd so far this month from 17.2 bcfd in July, leaving more supply available to the domestic market.