U.S. natural gas futures fell to a more than one-week low on Monday, pressured by record output and forecasts for milder weather and lower demand in the coming weeks than previously expected.
Front-month gas futures for September delivery on the New York Mercantile Exchange fell 4.3 cents, or 1.6%, to settle at $2.69 per million British thermal units (mmBtu), the lowest since August 7.
“Over the weekend we got some weather model moderation and the storage injection schedule over the next few weeks rose, which is indicating more of a bearish market condition,” said Robert DiDona, president of Energy Ventures Analysis.
Financial firm LSEG said average gas output in the U.S. Lower 48 states was up to 111.6 billion cubic feet per day (bcfd) so far in August, up from a monthly record high of 110.7 bcfd in July.
Record output and mild spring weather this year have allowed energy firms to keep the amount of gas in inventory higher than the five-year (2021-2025) average since March.
Gas inventories have remained in surplus despite weeks of above-normal temperatures this summer.
UNG•
