US natural gas prices climbed to around $2.81/MMBtu on Wednesday, rebounding from a one-week low in the prior session as forecasts for hotter weather boosted expectations for increased cooling demand. The Commodity Weather Group reported a shift toward warmer conditions, with above-average temperatures projected across the Gulf, Midwest, and Mid-Atlantic regions from August 30 through September 8.
Still, gains were limited by robust domestic production, reinforcing concerns about oversupply. Lower-48 output has averaged a record 111.4 bcfd so far in August, up from 110.7 bcfd in July, while inventories stood 6.7% above the five-year seasonal average as of August 14. Additionally, softer LNG export activity has pressured prices, with average gas flows to the nine major LNG export facilities edging down to 17.1 bcfd so far this month from 17.2 bcfd in July, leaving more supply available for the domestic market.
