US natural gas rises above $2.90 as storage build misses forecasts

US natural gas futures rose above $2.90 per million British thermal units, reaching a five-week high, after the Energy Information Administration reported a 15 billion cubic feet storage injection for the week ended August 21, below the 20 Bcf market forecast and the 33 Bcf five-year average increase. Working gas totaled 2,889 Bcf, 17.6% above the year-earlier level and 8.2% above the five-year average. Above-normal temperatures forecast across much of the eastern United States from August 31 through September 4 are expected to sustain air-conditioning demand and gas use by power generators. Lower 48 production averaged a record 111.4 Bcf per day in August, up from 110.7 Bcf per day in July, while average flows to the nine major US LNG export terminals eased to 17.1 Bcf per day from 17.2 Bcf in July. Recovering LNG demand offers support, but ample inventories and record production remain constraints.

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