US natural gas prices rose above $2.92/MMBtu on Monday, the highest level in more than five weeks, driven by forecasts for another period of above-normal temperatures. Persistently hot weather across parts of the South, East, and the East Coast is expected to keep air-conditioning use elevated, sustaining strong gas demand from power generators. Weather models indicate that warmer-than-average conditions may last through mid-September, though one forecast pointed to a decline in cooling-degree days, suggesting some easing in demand.
LNG demand also strengthened, with feedgas flows climbing to their highest level since late June after maintenance at the Freeport LNG facility in Texas was completed and the plant returned to service. Even so, robust domestic production continued to cap further price gains. Average output in the Lower 48 reached roughly 111.5 bcfd in August, surpassing July’s record of 110.7 bcfd.
