September Nymex natural gas (NGU26) closed at $2.691 per million British thermal units on Monday, down $0.043 (-1.57%), marking a one-week low amid cooler US weather forecasts that could decrease electricity demand for air conditioning. The Commodity Weather Group anticipates below-average temperatures in the eastern US from August 22-31.
The US Energy Information Administration (EIA) projects natural gas storage levels will reach 3,985 billion cubic feet (bcf) by the end of October, the highest in a decade and 5% above the five-year average. US dry gas production was reported at 114.1 billion cubic feet per day, while demand stood at 82.5 bcf/day. Additionally, LNG net flows to export terminals were recorded at 18.9 bcf/day, reflecting a 2.3% week-over-week increase.
As of August 7, US natural gas inventories increased by 36 bcf, exceeding market expectations, and were 6.7% above the five-year seasonal average. Meanwhile, the number of active US natural gas drilling rigs rose to 128, nearing a three-year high of 134 rigs set in February.
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