FX.co ★ US Natgas Prices Fall to 6-Week Low

U.S. natural gas futures fell by more than 2% to below $3.40 per MMBtu on Tuesday, reaching a six-week low. This decline is attributed to projections of increased production and milder weather conditions. Meteorological forecasts predict hotter-than-average temperatures at least until July 12. However, these temperatures are not expected to reach extreme highs, which should enhance natural gas storage injections and decrease demand in the upcoming weeks. In June, the average natural gas production in the Lower 48 states rose to 105.9 billion cubic feet per day, up from 105.2 billion cubic feet per day in May. On the other hand, liquefied natural gas exports to the eight major U.S. export facilities decreased to 14.4 billion cubic feet per day in June from 15.0 billion cubic feet per day in May. Additionally, geopolitical risk premiums eased somewhat after U.S. President Trump announced a ceasefire between Israel and Iran, alleviating tensions from a conflict that began on June 13.