FX.co ★ US Natgas Prices Decline Further

US natural gas prices fell to $2.90 per MMBtu, the lowest level in seven weeks, pressured by milder weather forecasts, expectations of reduced gas deliveries to LNG export facilities, and comfortable supply conditions. Weather projections have shifted toward cooler temperatures in the coming weeks, which is likely to dampen demand for gas-fired power generation as air-conditioning use declines. At the same time, Freeport LNG announced that scheduled maintenance at its pre-treatment and liquefaction facilities will begin on July 10 and run through late August, temporarily cutting feedgas demand. In addition, the latest EIA weekly report showed domestic gas inventories were 6.6% above the five-year average as of July 3, underscoring the currently well-supplied market.