US Natural Gas Prices Rise on Increased LNG Exports

US natural gas futures have been on the rise due to increased flows to LNG export facilities. The NYMEX futures contract for September delivery gained 2.2 cents, or 0.8%, to settle at $2.662 per million British thermal units (mmBtu), despite this recovery, the contract had closed at its lowest level since April 28.

Average natural gas production in the 48 contiguous states remained at 110.7 billion cubic feet per day during August, matching the monthly record set in July. High production and moderate temperatures allowed inventories to remain above average since March, with stockpiles expected to be 6.6% above normal levels.

Temperatures are continuing to drive demand for gas-fired electricity generation, with weather forecasts pointing to mostly warmer than usual conditions until August 22. Demand is expected to rise from 111 billion cubic feet per day this week to 114.6 billion next week, but then fall to 110 billion cubic feet per day within two weeks.