US natural gas prices fall near $2.74/MMBtu as supply outweighs LNG demand
US natural gas prices fall to around $2.74/MMBtu after a two-day advance as strong Lower 48 production, ample inventories 6.7% above seasonal norms, and eased LNG feedgas demand weigh.
US natural gas prices fell to around $2.74/MMBtu on Tuesday, retreating after a two-day advance as strong production, ample inventories, and weaker LNG feedgas demand weighed on the market.
Output in the Lower 48 states averaged a record 111.5 bcfd in August so far, up from 110.7 bcfd in July, adding to supply pressure as gas inventories are currently 6.7% above their five-year seasonal average.
At the same time, gas flows to the nine major LNG export facilities eased to 17.1 bcfd so far this month from 17.2 bcfd in July, leaving more supply available to the domestic market.
Reports showed Cheniere Energy’s Corpus Christi LNG plant in Texas continued to record lower natural gas intake on Monday, indicating that maintenance work is still ongoing.
Meanwhile, weather forecasts turned slightly cooler than previously expected, although above-average temperatures are still forecast across Texas and the Southwest through September 7, keeping electricity demand for air conditioning elevated.