19.09.202514:50:50UTC+00US Natgas Prices Fall to Over 3-Week Low

U.S. natural gas futures have declined to around $2.90 per MMBtu, marking the lowest point in over three weeks. This decrease results from large storage stocks and predictions of milder weather, which is likely to dampen immediate demand. Earlier this year, record production levels contributed to a higher-than-average injection into storage facilities, with current inventories standing approximately 6% above normal levels. The Energy Information Administration (EIA) reported a 90 billion cubic feet increase in storage for the week ending September 12, which exceeds both last year's 56 billion cubic feet and the five-year average of 74 billion cubic feet, as mild temperatures kept heating and cooling requirements low. Despite this, production from the Lower 48 states saw a slight decrease to 107.4 billion cubic feet per day in September from August’s peak of 108.3 billion cubic feet per day, and Liquefied Natural Gas (LNG) exports have dipped to 15.7 billion cubic feet per day. Projections suggest the weather will remain warmer than usual through October 4. The prices fell by 1% this week, following a 3.5% drop in the previous week.