US natural gas slips on profit-taking, record output
UNG•Forecasts point to high supply and moderating demand
Meteorologists forecast mostly warmer-than-normal temperatures through September 3, as Cooling Degree Days rose to 220 on Thursday from 217 on Wednesday. CDDs measure energy demand to cool buildings.
About 40% of U.S. power generation comes from gas-fired plants.
"While the temperature factor is still skewed bullish, we don't look for it to translate to a major reduction in a sizable storage surplus that is likely to see only minor contraction," consultancy Ritterbusch & Associates said in a note.
Financial group LSEG said average gas output in the U.S. Lower 48 states has reached 111.4 billion cubic feet per day so far in August, up from a monthly record high of 110.7 bcfd in July.
LSEG projected average gas demand in the Lower 48 states, including exports, would slip from 114.8 bcfd this week to 112.9 bcfd next week. The forecast for next week was lower than LSEG's outlook on Wednesday.
