A 33 bcf storage injection, near-record Lower 48 output and weaker LNG feedgas flows outweighed support from forecasts for above-normal August temperatures.
U.S. natural gas prices fell to around $2.62 per MMBtu, the lowest level since April, after a 33 bcf storage build reinforced expectations of ample supply. The injection for the week ended July 31 was well above the 13 bcf rise recorded a year earlier and the five-year average increase of 23 bcf. Lower 48 dry gas output remained near record highs at 110.6 bcfd so far in August, compared with a record 110.7 bcfd in July, while LNG feedgas demand eased to 16.9 bcfd from 17.2 bcfd as flows to major export plants softened. Reduced operations at Freeport LNG in Texas and the single operating liquefaction train at Golden Pass added to the pressure, more than offsetting support from forecasts for mostly above-normal temperatures through August 21.