FX.co ★ US Natgas Prices Rise from 10-Week Low

US natural gas futures experienced an uptick, reaching $3.16 per million British thermal units (MMBtu), recovering from a ten-week low of $3.066 observed in the previous session. This increase is attributed to forecasts indicating extreme heat throughout August, which has escalated demand projections. Meteorologists anticipate above-average temperatures across significant parts of the United States, particularly in the Southeast, mid-South, and Midwest regions. This climate trend is expected to lead to higher air conditioning usage, subsequently driving up gas consumption in the power sector. Meanwhile, geopolitical tensions are contributing to market dynamics, following President Trump's decision to expedite the timeline for Russia to negotiate a ceasefire with Ukraine, which raises the potential for expanded sanctions on Russian energy exports. Moreover, a newly established US-EU agreement includes a commitment from the European Union to allocate $750 billion towards the purchase of US energy products, including natural gas. Despite these factors, supply levels remain robust, with the average production in the Lower 48 states reaching 107.5 billion cubic feet per day (bcfd) in July, surpassing the previous record set in June. On the corporate front, Baker Hughes has announced a $13.6 billion acquisition of Chart Industries, surpassing Flowserve's bid, which underscores ongoing consolidation within the oil and gas industry.