FX.co ★ US Natgas Prices Fall to 6-Week Low

U.S. natural gas futures declined by 5%, settling below $3.2 per MMBtu on Wednesday, marking their lowest point in six weeks. This downturn is attributed to an increase in supply along with robust storage levels. Production in the Lower 48 states averaged 106.7 billion cubic feet per day (bcfd) in July, surpassing June's previous record of 106.4 bcfd. The volume of gas in storage remains approximately 6% above the five-year average, with analysts predicting another above-average weekly increase, representing the 11th occurrence in 12 weeks. Despite this surplus, demand is sustained by forecasts indicating hotter-than-normal weather conditions through the end of July, which is driving up electricity usage for air conditioning. Additionally, LNG exports have risen, as evidenced by the average gas flows to the eight primary U.S. export facilities reaching 15.6 bcfd, following recovery from maintenance and unforeseen outages at these plants.