FX.co ★ US Natgas Prices Fall Toward 2-Week Low

U.S. natural gas futures declined by approximately 3% to $3.23 per MMBtu, marking the lowest level in nearly two weeks. This drop is influenced by near-record production levels and projections of milder weather than initially anticipated. Although temperatures are expected to remain above average at least until August 6, updated forecasts predict less severe heat, consequently reducing the immediate need for cooling. Despite the summer's high temperatures, analysts predict that record-breaking production will continue to bolster substantial storage injections, with stockpiles currently about 6% above the seasonal average. According to data from LSEG, the average gas production in the Lower 48 states has increased to 107.2 billion cubic feet per day in July, breaking June's record of 106.4 billion cubic feet per day. Concurrently, natural gas deliveries to the eight primary U.S. LNG export facilities have risen to 15.8 billion cubic feet per day so far in July, an increase from June, as several units are gradually coming back online after maintenance and unforeseen outages.