U.S. natural gas futures fall 2% as summer nears its end

  • U.S. natural gas futures fell as cooler forecasts, fading cooling demand and ample supply weighed on prices near summer’s end.
  • Nymex natural gas was down 2% at $2.857 per mmBtu at 0943 ET, after falling 0.4% to $2.963 at 0924 ET.
  • LNG demand reached its highest level since April, but heavy storage and mild fall expectations kept the market under pressure.

U.S. natural gas futures fell as traders returned from the Labor Day holiday and assessed fading cooling demand, cooler forecasts and ample supply. Nymex natural gas was down 2% at $2.857 per mmBtu at 0943 ET, compared with a 0.4% decline to $2.963 at 0924 ET. Dennis Kissler of BOK Financial said the market remained in a sell-the-rallies pattern, while Eli Rubin of EBW Analytics said summer would quickly transition into fall. Strong U.S. LNG demand, at its highest level since April, was offset by heavy storage and expectations for mild fall temperatures, although a smaller-than-average storage build was expected to provide near-term support. Late-September conditions remained mildly supportive in parts of the country, with lingering cooling demand in the South Central region and early heating demand in the upper Midwest and New England.

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