U.S. natural gas rises above $2.80 as hotter forecasts boost demand

U.S. natural gas prices climbed above $2.80 per MMBtu, their highest level since July 24, as short-term forecasts turned more bullish for hotter weather across much of the country. Houston temperatures are expected to average around 100°F from Aug. 20 to 23, and warmer-than-normal conditions are forecast through early September, supporting air-conditioning demand and gas-fired power use. Peak demand on the Texas grid could still set a record as wind generation declines. The rally remains constrained by abundant supply: Lower 48 production has averaged around 111.5 billion cubic feet per day in August, above July’s monthly record of 110.7 bcfd, while inventories have stayed above the five-year average since March. Gas flows to the nine major U.S. LNG export facilities averaged 17.2 bcfd in August, unchanged from July and just below June’s record.

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