Commodities
US Natural Gas Prices Fall Amid Abundant Supplies and Solid Production
US natural gas prices have retreated from eight-week highs after falling below $2.90/MMBtu, weighed down by abundant domestic supplies and solid production.
The supply overhang is evident in US gas inventories, which were 5.2% above the five-year seasonal average as of August 28.
Output across the Lower 48 rose to 112.9 bcfd so far in September from August's monthly high of 112.2 bcfd.
Despite this supply overhang, forecasts for above-average temperatures across the US South through September 17 are expected to keep air-conditioning demand elevated, supporting natural gas consumption in the power sector.