US natural gas prices rebound toward $2.81/MMBtu on hotter forecast
US natural gas rose to around $2.81/MMBtu on Wednesday after a one-week low, as Commodity Weather Group forecasts shifted hotter and cooling demand expectations strengthened.
US natural gas prices rose to around $2.81/MMBtu on Wednesday, recovering from a one-week low reached in the previous session as forecasts for hotter weather lifted expectations for stronger cooling demand.
According to the Commodity Weather Group, forecasts shifted toward hotter conditions, with above-average temperatures anticipated across the Gulf, Midwest, and Mid-Atlantic regions from August 30 through September 8.
However, price gains were capped by strong domestic production, which added to oversupply concerns.
Lower-48 output averaged a record 111.4 bcfd so far in August, up from 110.7 bcfd in July, while inventories remained 6.7% above the five-year seasonal average as of August 14.
Softer LNG export activity has also weighed on prices, with average gas flows to the nine major LNG export facilities falling slightly to 17.1 bcfd so far this month from 17.2 bcfd in July, leaving more natural gas available for domestic use.