US natural gas prices rise above $2.90 as storage build misses forecasts

US natural gas prices climbed above $2.90 per million British thermal units, their highest level in five weeks, after the latest Energy Information Administration data showed storage increased by 15 billion cubic feet, below the 20 Bcf market forecast and the 33 Bcf five-year average for the period. Working gas stood at 2,889 Bcf as of August 21, 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. Strong domestic production remains a constraint on prices, with Lower 48 output averaging a record 111.4 billion cubic feet per day in August, up from 110.7 bcfd in July. Average flows to the nine major US LNG export terminals eased to 17.1 bcfd this month from 17.2 bcfd in July, although signs of recovering LNG demand are emerging.

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