US Natural Gas Futures Drop 1.7% to $3.22/mmBtu on High Output, Ample Storage Despite Heat Wave
LNG sits 30% above its 52-week low of $186.2.
Summary
US natural gas futures dropped 1.7% today to $3.22 per mmBtu, reversing yesterday's 3% climb. This decline is driven by increased US natural gas output and ample storage levels, which are projected to be 6.2% above normal, despite forecasts for record power demand during a heat wave. While average gas flows to US LNG export plants, including a record for Cheniere's Corpus Christi facility, rose in June, the overall fall in domestic natural gas prices is a negative for LNG exporters like Cheniere, impacting their profitability.
At the time of this announcement, LNG was trading at $242.01 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $50.7B. The 52-week trading range was $186.20 to $300.89. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.