NATGAS Analysis 12-July-2024

by InkWell July 12, 2024 · NATGAS Analysis / Commodities

US natural gas futures fell below $2.3/MMBtu on Thursday, hitting a two-month low. This drop came after the EIA reported a larger-than-expected storage build. Last week, utilities added 65 billion cubic feet of gas to storage, more than the expected 56 billion cubic feet.

Currently, gas storage is 18.7% above typical levels for this season. Prices are set for a fifth straight week of decline due to higher output, less gas flowing to LNG export plants after the Freeport LNG shutdown in Texas caused by Hurricane Beryl, and an oversupply of gas in storage.

Gas production in the Lower 48 states increased to 102.4 bcfd in July from 99.5 bcfd in May. Gas flow to major US LNG export facilities dropped to 12.2 bcfd in July from 12.8 bcfd in June, mostly because of the Freeport LNG closure. Meteorologists predict above-average temperatures across the Lower 48 states until at least July 25.