US Natgas Prices Plummet by Over 2% Amid Strong Production and Ample Inventories

US natural gas prices have taken a hit, plummeting by over 2% to around $2.73 per million British thermal units on Thursday.

This decline is attributed to strong production and ample inventories in the US, outweighing continued weather-driven demand for electricity.

The Energy Information Administration reported that energy companies added 36 billion cubic feet of gas to storage in the week ended August 7, exceeding market expectations and the five-year average of 33 bcf.

Production in the Lower 48 states averaged a record 111.2 bcfd in August, surpassing July's figure of 110.7 bcfd and contributing to inventory levels remaining above their five-year average since March.