FX.co ★ US Natgas Prices Bounce Back Above $3

U.S. natural gas futures have surpassed $3 per MMBtu again, buoyed by a reduction in production levels, heightened LNG export activities, and sustained high temperatures across much of the country. Weather forecasts indicate above-average temperatures persisting through late August, which is increasing the demand for air conditioning and subsequently elevating natural gas consumption for power generation — a sector that constitutes over 40% of the nation's electricity supply. Notably, daily gas production has decreased to a three-week low of 106 billion cubic feet per day (bcfd), falling nearly 4 bcfd from the peak levels seen in late July. Concurrently, demand for LNG feedgas has risen, averaging 15.9 bcfd thus far in August, up from July's average of 15.5 bcfd. This rise can be attributed to the resumption of operations at Freeport LNG’s facility in Texas following outages, and robust activity at Venture Global’s Plaquemines plant in Louisiana, which has achieved a record intake of 3.2 bcfd.