US natgas rises for second week near $2.79/MMBtu

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.