US Natgas Prices Decline
US natural gas prices fell to around $2.74/MMBtu on Tuesday, retreating after a two-day advance as strong production, ample inventories, and weaker LNG feedgas demand weighed on the market. Output in the Lower 48 states averaged a record 111.5 bcfd in August so far, up from 110.7 bcfd in July, adding to supply pressure as ...
Natural gas prices in the United States dropped to approximately $2.74/MMBtu on Tuesday, following a two-day increase. This decline was attributed to strong production, abundant inventories, and reduced demand for liquefied natural gas (LNG) feedgas. The Lower 48 states generated a record 111.5 billion cubic feet of gas per day (bcfd) in August, up from 110.7 bcfd in July.
This surge in output added to the pressure on supply, as gas inventories are currently 6.7% above the five-year seasonal average. Additionally, gas flows to the nine major LNG export facilities declined to 17.1 bcfd this month from 17.2 bcfd in July, further increasing supply availability in the domestic market. Cheniere Energy's Corpus Christi LNG plant in Texas continued to report lower natural gas intake on Monday, indicating ongoing maintenance work.
Weather forecasts indicated slightly cooler temperatures than initially expected, although above-average temperatures were still forecast for Texas and the Southwest through September 7. This would keep demand for cooling elevated.
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