On September 5, 2023, Nymex natural gas prices for September (NGU25) closed at $2.705, up $0.021 (+0.78%). The increase in prices was attributed to a weaker dollar prompting mild short covering, despite natural gas prices having recently reached a 9.5-month low due to forecasts of cooler late-summer weather reducing demand for air conditioning.
As of September 5, US (lower-48) dry natural gas production was 107.3 billion cubic feet per day (bcf/day), a 4.5% increase year-on-year. Conversely, gas demand was recorded at 73.9 bcf/day, down 10.7% year-on-year. Additionally, LNG net flows to US export terminals were estimated at 14.9 bcf/day, up 8.2% week-on-week.
The latest EIA report indicated that natural gas inventories rose by 13 bcf for the week ending August 15, which was below the expected increase of 18 bcf and below the 5-year average of 35 bcf. Current US nat-gas inventories are down 3.0% year-on-year but 5.8% above the 5-year average, suggesting adequate supplies.
