U.S. natural gas futures fell about 4% to a six-week low on Thursday on expectations gas flows to liquefied natural gas (LNG) export plants will remain low through late August due to
U.S. natural gas futures fell about 4% to a six-week low on Thursday on expectations gas flows to liquefied natural gas (LNG) export plants will remain low through late August due to planned maintenance at Freeport LNG's plant in Texas, and after the release of a federal report showing last week's storage build was much bigger than expected.
Front-month gas futures for August delivery on the New York Mercantile Exchange fell 13.9 cents, or 4.3%, to $3.073 per million British thermal units (mmBtu), putting the contract on track for its lowest close since May 27.
Freeport LNG told Reuters in an email that it planned to start major maintenance at the plant from July 10 through late next month.
The U.S. Energy Information Administration (EIA) said energy firms added 61 billion cubic feet of gas to storage during the week ended July 3.
That was much bigger than the 49-bcf build analysts forecast in a Reuters poll and compares with an increase of 53 bcf during the same week last year and a five-year (2021-2025) average increase of 51 bcf for the period.
SUPPLY AND DEMAND:
Financial group LSEG said average gas output in the U.S. Lower
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