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Natural gas drops as US supplies rise and cooler weather is forecast
Nymex September natural gas (NGU26) fell 3.6% to close down 0.099, after Energy Transfer said the Hugh Brinson pipeline will reach full capacity of 1.5 bcf/day by September 1.
Natural gas prices retreated as traders weighed expectations for larger US supplies and forecasts for cooler weather that could reduce electricity demand for air conditioning, according to Yahoo Finance.
The September Nymex natural gas contract (NGU26) closed down 0.099, or 3.6%, on Tuesday. Pressure also came after Energy Transfer said its Hugh Brinson pipeline would be able to operate at full transportation capacity of 1.5 bcf/day by September 1, which would allow more gas to move from the Permian Basin to the Henry Hub benchmark in Erath, Louisiana.
Weather forecasts also shifted toward cooling, with the Commodity Weather Group noting below-average temperatures expected in the Midwest and Northeast through August 18. That follows a recent price slide to a 3.25-month nearest-futures low after below-normal temperatures reduced air-conditioning demand and helped inventories rebuild.
In the data referenced by Yahoo Finance, US (lower-48) dry gas production rose to 111.2 bcf/day (+2.2% year over year) and lower-48 state gas demand was 80.7 bcf/day (+10.0% year over year), while estimated LNG net flows to US export terminals were 18.2 bcf/day (+0.1% week over week). The article also notes the EIA raised its 2026 dry natural gas production forecast to 111.2 bcf/day from 111.0 bcf/day in June.
Latest closeNat gas $2.669 ▼0.5%