FX.co ★ US Natgas Prices Start Week Lower

On Monday, U.S. natural gas futures declined by more than 5%, falling below $3.40 per MMBtu. This shift came as a correction to last week’s 7% increase, driven by robust supply levels and a subdued demand forecast. Production has hit a new peak, averaging 107.0 billion cubic feet per day (bcf/day) in July, exceeding the previous high of 106.4 bcf/day recorded in June. This production surge allowed energy companies to add 46 bcf to storage for the week ending July 11. This figure is significantly greater than the 18 bcf injected during the same week last year and the five-year average of 41 bcf. Consequently, total gas inventories are now 6.2% higher than the seasonal norm. On the export side, LNG shipments are on the rise, with flows to terminals averaging 15.8 bcf/day in July so far, an increase from 14.3 bcf/day in June, as facilities gradually resume operations following maintenance and unplanned outages.