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

U.S. natural gas futures have dipped below $2.8 per million British thermal units (MMBtu), bringing prices close to their lowest levels since November 2024. This decline is largely attributed to near-record production rates and robust storage levels. In August, the average output in the Lower 48 states reached 108.1 billion cubic feet per day (bcfd), an increase from July's record of 107.9 bcfd. Despite experiencing a hotter-than-usual summer, the substantial supply has enabled higher-than-average injections into storage facilities, with inventory levels approximately 7% above the seasonal average and projected to continue rising. The most recent data from the U.S. Energy Information Administration (EIA) indicated a storage increase of 56 billion cubic feet for the week ending August 8, far exceeding seasonal expectations. Furthermore, liquefied natural gas (LNG) feedgas flows have averaged 16.2 bcfd in August, rising from 15.5 bcfd in July. Projections suggest the weather will remain hotter than average through the end of August.