US Natgas Prices Fall to Over 3-Month Low
US natural gas futures fell to $3.02/MMBtu, the lowest since April 22, pressured by rising supply and weaker near-term demand. According to LSEG, average gas output in the Lower 48 states rose to 107.5 billion cubic feet per day in July, topping June’s record of 106.4 bcfd. The surge in production comes as forecasts point to cooler near-term temperatures, which could reduce power sector gas use for air conditioning. Weaker power burn and faltering demand expectations have weighed heavily on sentiment. However, the market is eyeing hotter weather further into August, which may revive air-conditioning demand and lift gas consumption by utilities. Some heat is beginning to appear in the 11–15 day outlooks, which could give bulls hope of a rebound. Additionally, liquefied natural gas (LNG) demand has been soft recently but could strengthen, offering further support if international buyers return.