US natural gas prices fell more than 2% on Thursday to around $2.73 per million British thermal units, as robust production and ample inventories outweighed weather-driven demand. Energy companies injected 36 billion cubic feet of gas into storage in the week ended August 7, exceeding both market expectations and the five-year average build of 33 bcf.
Production in the Lower 48 states averaged a record 111.2 bcfd in August, up from 110.7 bcfd in July, keeping inventories above their five-year average since March. Even so, hotter-than-normal weather is forecast to persist through August 28, supporting electricity demand for air conditioning and helping to limit further downside in gas prices.
At the same time, about 490,000 homes and businesses remained without power after severe storms swept through the US Midwest. Gas flows to the nine major US LNG export facilities eased to 17.1 bcfd in August, down from 17.2 bcfd in July and below June’s record monthly average of 17.4 bcfd.
