11.08.202613:42:08UTC+00Natural Gas Market Balances Heat and Strong Supply

US natural gas prices hovered near $2.80 per million British thermal units as traders balanced hotter weather forecasts and growing LNG demand against abundant supply. Updated outlooks now call for significantly above-normal temperatures across the central and southern US, likely lifting electricity usage as households and businesses intensify air-conditioning, in turn driving up gas consumption by power generators.

At the same time, gas flows to LNG export terminals along the Gulf Coast have risen to their highest level in more than a month, as several facilities appear to have completed seasonal maintenance. This uptick in exports is reducing the volume of gas available to the domestic market.

Still, the upside for prices remains capped by elevated storage levels, with inventories expected to stand about 6.6% above the five-year average for the week ending August 7. Robust production, coupled with additional volumes from new West Texas pipeline capacity, is also expected to keep the market comfortably supplied.