US Natgas Prices Fall to 6-Week Low
US natural gas futures fell 5% to below $3.2/MMBtu on Wednesday, the lowest in six weeks, due to rising supply and strong storage levels. Output in the Lower 48 states averaged 106.7 billion cubic feet per day (bcfd) in July, up from June’s record of 106.4 bcfd. Gas in storage remains about 6% above the five-year average, with analysts expecting another above-average weekly build—the 11th in 12 weeks. Despite this surplus, demand remains strong due to forecasts of hotter-than-normal weather through late July, pushing up power usage for air conditioning. LNG exports also increased, with average gas flows to the eight major US export facilities reaching 15.6 bcfd, as plants recover from maintenance and unplanned outages.