FX.co ★ US Natgas Prices Fall after EIA Data

U.S. natural gas futures dipped to $3.44 per MMBtu on Thursday, following the release of data from the Energy Information Administration (EIA) showing another consecutive week of higher-than-average storage injections, this marking the eleventh. Last week, energy companies added 55 billion cubic feet (bcf) to storage. This figure surpassed market expectations of a 53 bcf addition and significantly eclipsed the 35 bcf increase from the same period last year. Although this recent injection was slightly below the five-year average of 61 bcf, it still indicates a robust supply situation. Concurrently, weather forecasts for mid-July predict hotter temperatures, which are likely to boost demand for air conditioning and subsequently increase usage of gas-fired power. Liquefied Natural Gas (LNG) export activity is also on the rise. Early July saw average LNG flows to the eight major U.S. plants increase to 15.4 billion cubic feet per day (bcfd), up from 14.4 bcfd in June as these facilities resume operations post-spring maintenance. Furthermore, Golden Pass LNG has sought U.S. approval to begin re-exporting LNG starting October 1, indicating their facility is nearing operational status.