US Natural Gas Prices Gain As Late-Summer Heat Lifts Demand.
✧ GENERATE BRIEFING +
US natural gas futures advanced on Friday, marking a fourth consecutive weekly gain driven by unseasonably warm late-summer weather that intensified air-conditioning demand and boosted gas-fired power generation. The front-month October contract settled 2.1% higher at $2.975 per million British thermal units (mmBtu), locking in a weekly gain of approximately 2.4%. With gas-fired plants accounting for roughly 40% of domestic power generation, analysts at Gelber & Associates anticipate that persistent high temperatures will sustain bullish market momentum in the near term. Compounding these weather patterns, meteorological agencies report an almost 100% probability that El Niño conditions will persist through February 2027, propelled by elevated Pacific Ocean temperatures.On the supply front, US natural gas inventories grew by 30 billion cubic feet (bcf) for the week ending August 28—falling short of the five-year average build of 37 bcf and last year's 50 bcf injection.
US natural gas futures rose on Friday, marking their fourth consecutive weekly gain, as unusually warm weather across parts of the country increased demand for gas-fired power generation.
The front-month October contract settled 2.1% higher at $2.975 per million British thermal units (mmBtu), bringing its weekly gain to around 2.4%.
Above-average temperatures in the Midwest and eastern United States boosted air-conditioning demand, prompting power generators to burn more natural gas. Gas-fired plants account for about 40% of US power generation, according to the report.
Analysts at Gelber & Associates said the recent price uptrend could continue in the coming weeks as unusually hot late-summer temperatures support demand, maintaining a bullish outlook for the market.
The weather outlook also remains significant, with the UN weather agency forecasting an almost 100% probability that El Niño will persist through February 2027, supported by exceptionally warm Pacific Ocean temperatures.
Meanwhile, US gas inventories increased by 30 billion cubic feet in the week ended August 28, broadly in line with analysts’ expectations but below both last year’s 50-bcf build and the five-year average increase of 37 bcf for the period.
US Lower 48 gas production averaged 112.9 billion cubic feet per day (bcfd) in September, up from August’s monthly high of 112.2 bcfd. LNG export flows also increased to 18.1 bcfd, compared with 17.2 bcfd in August.
European wholesale gas prices eased slightly but remained near their highest levels since January 2023 as markets assessed low storage levels and competition for LNG ahead of the winter season.
