US natural gas prices slipped to about $2.73 per million British thermal units on Monday, retracing part of last week’s 1.5% advance as cooler weather moved into the eastern United States.
A broad cold front is forecast to bring more autumn-like conditions to the Northeast, Mid-Atlantic and Ohio Valley, with parts of the South also expected to get relief from recent heat. The cooler outlook is set to curb demand for gas-fired power generation, putting downward pressure on prices.
On the supply side, robust production and relatively mild weather earlier this year have kept inventories above the five-year average since March. Average output in the Lower 48 has reached 111.5 billion cubic feet per day so far in August, topping July’s record of 110.7 bcfd.
By contrast, average gas flows to the nine major US LNG export facilities have held around 17.2 bcfd in August, remaining below June’s record levels.
