US Natgas Prices Plummet Toward Four-Month Low
US natural gas prices have fallen to nearly a four-month low due to increased production and comfortable inventory levels. On Monday, prices dropped more than 3% to around $2.64 per million British thermal units (MMBtu), approaching the lowest levels seen in mid-April.
The Energy Information Administration's (EIA) report last week showed that energy firms injected 36 billion cubic feet (bcf) of gas into storage in the week ended August 7, exceeding market expectations and the five-year average increase. This is on top of record production levels in the Lower 48 states, which averaged 111.3 bcfd in August so far.
Gas flows to the nine major LNG export facilities also eased to 17.1 bcfd this month from 17.2 bcfd in July, reducing the volume of gas processed for export and leaving more supply available to the domestic market.