Natural Gas Market Balances Heat and Strong Supply

US natural gas prices fluctuated around $2.80 per million British thermal units as investors weighed hotter weather forecasts and rising LNG demand against strong supply levels. Forecasts now point to significantly hotter conditions across the central and southern US, which could boost electricity demand as consumers increase air-conditioning use and raise gas consumption by power generators. Also, flows to US LNG export terminals on the Gulf Coast climbed to their highest level in more than a month as some facilities appeared to complete seasonal maintenance, reducing gas available to the domestic market. However, elevated inventories continue to limit the upside, with storage expected to remain 6.6% above the five-year average for the week ending August 7. Strong production and additional supply from West Texas pipelines coming online are also expected to keep the market well supplied.





