FX.co ★ US Natgas Prices Edge Down

US natural gas prices have fallen to $3.20 per MMBtu, pressured by ample storage levels and updated weather forecasts calling for cooler conditions. Meteorologists anticipate below-average temperatures in the mid-Atlantic region from June 23 to 27, a development likely to curb electricity demand for air conditioning. This shift follows a mild spring that enabled energy companies to build inventories aggressively, leaving domestic gas stocks about 5.8% above their seasonal norm. At the same time, reduced gas flows to US liquefied natural gas (LNG) export terminals have redirected additional supply back into the domestic market. This increased availability has more than offset a modest pullback in output, with average daily production in the Lower 48 states easing to 109.5 billion cubic feet so far in June from 109.7 billion cubic feet in May.