Natural gas prices rose by 3.62% to $266 due to declining daily output, increasing LNG export flows, and forecasts for hotter-than-normal weather in the U.S. through late August. This heatwave is expected to increase air conditioning demand and gas consumption for power generation.
Gas-fired power plants generate over 40% of the U.S.’ electricity, making the fuel crucial during periods of high cooling demand. Average gas output in the Lower 48 states increased to 108.0 billion cubic feet per day in August.
However, daily output fell to a three-week low, indicating supply tightening. Gas demand is expected to rise from 105.1 to 110.5 billion cubic feet next week.
