US natural gas prices slipped below $2.90/MMBtu, pulling back from eight-week highs, as ample domestic supply and robust production continued to pressure the market. As of August 28, US gas inventories stood 5.2% above the five-year seasonal average, underscoring a persistent supply surplus. Production in the Lower 48 has also climbed, averaging 112.9 bcfd so far in September, up from August’s monthly high of 112.2 bcfd, further reinforcing the oversupplied backdrop.
These supply-side dynamics have outweighed support from a strengthening demand environment. Forecasts for above-average temperatures across the US South through September 17 are expected to keep air-conditioning use elevated, bolstering natural gas consumption in the power sector. At the same time, gas deliveries to the nine major US LNG export facilities have risen to 18.1 bcfd in September, compared with 17.2 bcfd in August. Overseas demand for US LNG in Europe and Asia has also increased sharply, as buyers move to replace disrupted Middle Eastern supplies and rebuild inventories ahead of the winter heating season.
