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

U.S. natural gas futures experienced a 4% increase on Friday, reaching $2.96 per MMBtu. This rise followed a rebound from the nine-month low of $2.808 recorded on August 12, driven by projections of increased near-term demand and the resumption of operations at Freeport LNG’s Texas export facility after a brief shutdown. The average LNG feedgas flow in August reached 16.2 billion cubic feet per day (bcfd), up from July's 15.5 bcfd. Despite this uptick, prices are still on track for a fourth consecutive weekly decline, as data from the Energy Information Administration (EIA) revealed a storage build of 56 billion cubic feet (bcf) for the week ending August 8, significantly exceeding typical seasonal levels and bringing inventories to approximately 7% above the five-year average. Production in the Lower 48 States has reached 108.1 bcfd this month, surpassing the record set in July. While the weather is forecasted to remain hotter than usual through the end of August, the arrival of Tropical Storm Erin—expected to develop into a major hurricane heading toward the Bahamas—has the potential to cool the U.S. East Coast and alter prevailing conditions.