US natural gas prices fell more than 3% on Thursday to below $3.10 per MMBtu, their lowest level in over two weeks, after a larger-than-expected increase in storage. The EIA reported that US energy firms injected 108 billion cubic feet of gas into storage last week, exceeding market expectations of 101 bcf. That lifted total inventories to 2.686 trillion cubic feet, about 6% above the five-year average, underscoring comfortable supply levels.
Warmer-than-normal weather is forecast through June 26, which could support gas demand from power generators. However, average US LNG export volumes have slipped to 16.5 bcfd so far in June from 17.1 bcfd in May, reflecting maintenance at facilities including Golden Pass LNG and Freeport LNG in Texas. At the same time, gas output in the US Lower 48 states has edged down to 109.0 bcfd in June from 109.7 bcfd in May.
