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

U.S. natural gas futures have declined by 1.5%, reaching $2.79 per million British thermal units (MMBtu), marking the lowest price since November 2024. This downturn follows the Energy Information Administration's (EIA) report of a significant increase in natural gas storage. Utilities injected 56 billion cubic feet (bcf) into storage during the week ending August 8, bringing the total to 3.186 trillion cubic feet (tcf), which is 6.6% above the five-year average and slightly surpasses the anticipated increase of 53 bcf. Additionally, natural gas production in the Lower 48 states has averaged 108.3 bcf per day (bcfd) so far in August, exceeding July's record of 107.9 bcfd. Liquefied Natural Gas (LNG) exports are also on the rise, with average feedgas flows to U.S. export facilities at 16.2 bcfd this month, up from 15.5 bcfd in July. Looking forward, while above-normal temperatures are forecasted through August 27, the expected heat intensity is now projected to be lower than previously anticipated.