US natural gas tops $2.92/MMBtu, highest in over five weeks
US natural gas rose above $2.92/MMBtu to a more-than-five-week high as forecasts call for above-normal temperatures through mid-September, supporting power-sector demand. LNG feedgas flows hit the highest level since late June after Freeport LNG maintenance; production limited upside.
US natural gas prices climbed above $2.92/MMBtu on Monday, reaching their highest level in more than five weeks as forecasts pointed to another stretch of above-normal temperatures.
Hot conditions across parts of the South, East and East Coast are expected to keep air-conditioning demand elevated and support gas consumption from power generators.
Weather models suggest warmer-than-usual conditions could persist through mid-September, although one forecast showed a reduction in cooling-degree days, pointing to some moderation in demand.
LNG demand also strengthened, with feedgas flows reaching their highest level since late June following the completion of maintenance at Freeport LNG in Texas, bringing the facility back online.
However, strong domestic production continued to limit the upside.
Average output in the Lower 48 states reached about 111.5 bcfd in August, surpassing July’s record of 110.7 bcfd.