Updated

Updated · Natural Gas Intelligence · Aug 20

NYMEX September Gas Falls 7.9 Cents to $2.735 as 16 Bcf Storage Build Signals Ample Supply

Updated

Updated · Natural Gas Intelligence · Aug 20

NYMEX September Gas Falls 7.9 Cents to $2.735 as 16 Bcf Storage Build Signals Ample Supply

Q: Why are natural gas prices plunging despite scorching summer heat across the US?

Natural gas prices are falling because the market is focused more on abundant supply than on heat-driven demand. Even with scorching temperatures boosting air-conditioning use and power-sector gas burn, inventories remain comfortable. The EIA reported a 16 Bcf storage injection for the week ended Aug. 14, following several other summer builds, lifting working gas to about 3,169 Bcf. That is still well above the five-year average, which tells traders the system is adequately supplied despite strong seasonal demand. Production is another key reason. U.S. output has softened at times, but it remains near historically high levels overall. Estimates for Lower 48 dry gas production have been around 112 Bcf/d, up from a year ago, and the EIA expects growth from major basins such as the Permian and Haynesville to keep inventories elevated. Demand support from LNG exports has also been weaker than the market would like. LNG remains a major outlet for U.S. gas, but maintenance at Freeport LNG has reduced feedgas demand, leaving more gas at home and adding to the storage cushion. That has diluted the bullish impact of the heat. In short, traders are looking past the summer weather because storage is still building, inventories are above normal, production remains robust, and export demand has been temporarily restrained. That combination has kept NYMEX gas futures under pressure, with the September contract slipping to about $2.735/MMBtu.

2 articles · Updated · Natural Gas Intelligence · Aug 20

$2.735/MMBtu marked September NYMEX natural gas futures by 11:53 a.m. ET, leaving the contract down 7.9 cents and in negative territory on Thursday.
A 16 Bcf net storage injection for the week ended Aug. 14 reinforced the market's comfortable supply outlook, which outweighed support from hotter weather forecasts across much of the Lower 48.
That supply cushion also kept pressure on prices despite downward-trending production, underscoring that traders still see inventories as sufficient near term.

Sources

Natural Gas Intelligence7h ago

NYMEX Natural Gas Futures Decline Amid Comfortable Supply Outlook

Natural Gas Intelligence7h ago

NYMEX September Natural Gas Futures Fall to $2.735/MMBtu Amid Supply Outlook

Why are natural gas prices plunging despite scorching summer heat across the US?

How will the unexpected drop in LNG demand secretly reshape American energy markets?

Could record-breaking storage levels trigger a sudden collapse in US energy production before winter?

Sources

2 total

Natural Gas Intelligence7h ago

NYMEX Natural Gas Futures Decline Amid Comfortable Supply Outlook

Natural Gas Intelligence7h ago

NYMEX September Natural Gas Futures Fall to $2.735/MMBtu Amid Supply Outlook

NYMEX September Gas Falls 7.9 Cents to $2.735 as 16 Bcf Storage Build Signals Ample Supply

Summary

Sources

Insights

Related Stories

Sources

Related Stories