FX.co ★ US Natgas Prices Fall to 9-Month Low

U.S. natural gas futures have declined to under $2.9 per MMBtu, marking the lowest point since November 2024. This drop is influenced by nearly peak production levels, solid storage reserves, and forecasts of milder weather. In August, production in the Lower 48 states averaged 108.4 billion cubic feet per day (bcfd), a slight increase from July's record of 107.9 bcfd. Although this summer has been warmer than usual, substantial supply has facilitated greater-than-average storage injections, with inventories running approximately 6% above typical seasonal levels and expected to continue rising. While meteorologists predict above-normal temperatures until August 26, the heat is expected to be less intense than earlier predicted, resulting in decreased demand. Liquefied Natural Gas (LNG) exports are also on the rise, with average feedgas flows to U.S. export facilities reaching 16.2 bcfd this month, up from July's 15.5 bcfd. Daily flows are projected to hit 17.0 bcfd, approaching April's record of 17.3 bcfd, largely fueled by record deliveries to Venture Global’s new Plaquemines facility in Louisiana.