FX.co ★ US Natgas Prices Rise, But Head for 4th Weekly Drop

U.S. natural gas futures have climbed to $2.87 per MMBtu as of Friday, bouncing back from a nine-month nadir of $2.808 on August 12. This rise is attributed to forecasts indicating stronger demand in the near term and the near-full resumption of operations at Freeport LNG's Texas export facility following a brief shutdown. In August, LNG feedgas flows have averaged 16.2 billion cubic feet per day (bcfd), up from July's 15.5 bcfd. Despite this uptick, prices are poised to mark a fourth consecutive weekly decline. According to recent data from the Energy Information Administration (EIA), there was a 56 billion cubic feet stockpile increase for the week ending August 8, significantly surpassing seasonal averages and positioning inventories approximately 7% above the five-year mean. Production in the Lower 48 States has reached an impressive 108.1 bcfd for the month thus far, surpassing the July records. While the weather is anticipated to remain hotter than usual through late August, the projected path of Tropical Storm Erin—which is likely to intensify into a major hurricane and impact the Bahamas—could potentially lower temperatures along the U.S. East Coast and cause disruptions.