10.09.202614:46:22UTC+00US Natgas Prices Fall to 3-Week Low

US natural gas prices fell below $2.78/MMBtu, hitting a three-week low after the EIA reported a larger-than-expected increase in storage. Utilities injected 40 billion cubic feet into inventories for the week ending September 4, surpassing expectations for a 31 bcf build and bringing total stocks to 3.254 trillion cubic feet. Storage levels now stand 4.8% above the five-year average, reinforcing concerns about ample supply.

Production remains robust, with Lower 48 output averaging 112.9 bcfd so far in September, above August’s monthly peak. This strong supply has outweighed support from firm demand. Above-normal temperatures across the South and Southeast are expected to keep air-conditioning demand elevated, while gas flows to major LNG export terminals have risen.

At the same time, stronger European and Asian demand for US LNG—driven by efforts to secure alternatives to disrupted Middle Eastern supplies and to prepare for the winter heating season—is providing an additional layer of underlying support to the market.