NATGAS Analysis 5-August-2024

US natural gas futures were around $1.96 per MMBtu, slightly lowering the week’s gains after new weather forecasts reduced extreme heat warnings, leading to less demand for air conditioning.

NATGAS Analysis 5-August-2024

Predictions of record heat in the Lower 48 states for August had caused natural gas futures to rebound sharply from a low of $1.9 last week, but a decrease in the expected severity of the heatwave has since eased concerns.

However, risks of reduced gas supply continued to provide some support in global gas markets. One of the two trains at the Ichthys LNG plant in Darwin, Australia, was halted due to technical issues.

This happened alongside reports that Freeport LNG, the second-largest US export facility, is taking in over 2 billion cubic feet of gas daily and is expected to return to total production soon. Increased capacity for US LNG exporters means more international sales and higher competition for US consumers.