FX.co ★ US Natgas Prices Remain Near 15-Month Low

U.S. natural gas futures saw a decline to $2.8 per MMBtu on Friday, pulling back from a 2.7% increase witnessed in the prior session and resting close to their lowest point since November 2024. This drop was attributed to ample supply. As of August, production in the Lower 48 states has reached an unprecedented average of 108.1 billion cubic feet per day (bcfd), slightly surmounting July's average of 107.9 bcfd. However, recent daily output fell to 106.4 bcfd, marking a six-week low. The sustained high supply, despite the hotter-than-usual summer temperatures, has resulted in storage levels surpassing the typical average by around 5.8% for this period. Nonetheless, the weekly injections into storage have trailed the five-year average, indicating restrained demand. Liquefied natural gas (LNG) export flows have experienced a mild increase, averaging 15.8 bcfd this month. With weather projections showing conditions close to seasonal averages through early September, demand is anticipated to remain steady, applying continuous pressure on prices despite occasional short-lived increases.