US Natural Gas Prices Plunge to Three-Month Low Amid Storage Build
US natural gas prices dropped to a three-month low of $2.62 per million British thermal units (MMBtu) due to a large storage build, according to data from the Energy Information Administration (EIA).
The EIA report showed that energy firms injected 33 billion cubic feet (bcf) of gas into storage in the week ended July 31, exceeding both last year's increase of 13 bcf and the five-year average rise of 23 bcf.
Production levels remained near record highs despite a slight easing, with Lower 48 dry gas output averaging 110.6 billion cubic feet per day (bcfd) in August, compared to a record 110.7 bcfd in July.
Liquefied natural gas (LNG) feedgas demand also weakened, with average flows to the nine major LNG export plants falling to 16.9 bcfd this month from 17.2 bcfd in July, partly due to reduced operations at Freeport LNG in Texas and the single operating liquefaction train at Golden Pass.