US Natgas Prices Climb for 2nd Week

US natural gas prices rose to around $2.79 per million British thermal units on Friday, up more than 2% for a second consecutive week as traders balanced expectations for persistent summer heat against abundant supply. The latest EIA report showed US utilities added only 16 billion cubic feet of gas to storage last week, below both the 19 bcf injection recorded a year earlier and the five-year average of 29 bcf. Despite the smaller increase, inventories remain comfortably above seasonal norms, supported by record production and relatively mild weather earlier in the year. Strong output has therefore limited the impact of elevated summer demand on storage levels. Meanwhile, average gas flows to the nine major US LNG export facilities held at 17.2 bcfd in August, slightly below June’s record of 17.4 bcfd. Looking ahead, forecasts for warmer-than-normal temperatures through September 3 could boost gas consumption from power generators and provide further support to prices.

US natural gas prices slipped to around $2.72 per million British thermal units on Thursday, retreating from a near four-week high as traders balanced expectations for continued hot weather against ample supply. The latest EIA data showed US utilities added just 16 billion cubic feet of gas to storage last week, below both the 19 bcf increase recorded during the same period last year and the five-year average of 29 bcf. Despite the smaller-than-usual injection, inventories remain above the seasonal norm, supported by record production and relatively mild weather earlier this year. Gas output has therefore remained strong enough to keep storage levels comfortable despite sustained summer heat. Meanwhile, average flows to the nine major US LNG export facilities were steady at 17.2 bcfd in August, slightly below June’s record of 17.4 bcfd. Looking ahead, forecasts point to predominantly warmer-than-normal conditions through September 3, which could support demand from power generators.

US natural gas prices climbed above $2.80 per million British thermal units, reaching their highest level since July 24, as forecasts pointed to hotter weather across much of the country. Short-term temperature outlooks have turned more bullish, with Houston temperatures expected to average around 100°F (38°C) from August 20 to 23. Also, warmer-than-normal conditions are forecast through early September. However, abundant supply remains a key constraint on further gains. Lower-48 production averaged around 111.5 billion cubic feet per day so far in August, above July’s monthly record of 110.7 bcfd. Robust output and relatively mild spring weather have kept inventories above the five-year average since March, despite persistent summer heat. Meanwhile, gas flows to the nine major US LNG export facilities averaged 17.2 bcfd in August, unchanged from July and just below June’s record.