US natural gas holds near $2.91/MMBtu, five-week high
US natural gas prices held around $2.91/MMBtu, the highest level in five weeks. EIA data showed a 15 Bcf storage injection for the week ended August 21 versus a 20 Bcf forecast and 33 Bcf five-year average.
US natural gas prices held around $2.91/MMBtu, the highest level in five weeks, supported by a smaller-than-usual storage injection and forecasts for continued warm weather.
EIA data showed that energy firms added 15 Bcf of gas to storage for the week ended August 21, below the 20 Bcf forecast and the 33 Bcf five-year average for the period.
Gas prices also gained as record-high temperatures are expected across the Southwest through this weekend, while the Commodity Weather Group said on Thursday that above-average temperatures are anticipated across nearly the entire US from September 1-10, keeping cooling demand elevated.
However, strong domestic production is capping further price gains, with output in the Lower 48 states averaging a record 111.4 bcfd so far in August, up from 110.7 bcfd in July.
Meanwhile, average gas flows to the nine major LNG export facilities fell slightly to 17.1 bcfd from 17.2 bcfd in July, though signs of recovering LNG demand are emerging.