FX.co ★ US Natgas Prices Climb to 1-Month High

US natural gas prices climbed to about $2.91 per MMBtu on Thursday, the highest level in a month, as forecasts for several more weeks of hot weather boosted expectations for stronger cooling demand. The Commodity Weather Group projected well‑above‑average temperatures across the eastern two‑thirds of the country from August 31 through September 4, a pattern that is likely to keep gas demand from power generators elevated as air‑conditioning use remains high.

Market focus now turns to the weekly storage report, with consensus pointing to a smaller‑than‑normal inventory build. This has helped offset downward pressure from robust domestic output, with production in the Lower 48 states averaging a record 111.4 bcfd so far in August, up from 110.7 bcfd in July.

At the same time, average gas flows to the nine major LNG export facilities have eased slightly to 17.1 bcfd so far this month, compared with 17.2 bcfd in July. Still, there are early signs of a recovery in LNG demand, which could lend additional support to prices going forward.