NEW YORK: US natural gas futures slipped more than 4% on Tuesday, tracking a retreat in European rates, with prices hitting an over one-week low as supplies in the United States were seen rising. On its first day as the front-month, gas futures for October delivery were down 40.5 cents, or 4.3%, to $8.93 per million British thermal units (mmBtu) by 10:01 a.m. EDT (1401 GMT), having dropped to their lowest level since Aug. 19.
Data provider Refinitiv said gas output in the US Lower 48 states rose to 98.1 billion cubic feet per day (bcfd) on Monday, its highest since Aug. 8.
“The production and overall supply increased not only from natural gas production, but also from slightly higher Canadian imports,” said Robert DiDona of Energy Ventures Analysis.
“When you couple the current weather forecast, which did get a little warmer over the weekend, with the supply gains and then the European gas price sell-off, I think it’s just resulted in a little bit of profit taking.”
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