NEW YORK: US natural gas futures held near a two-week low on Friday on forecasts for less hot weather over the next two weeks than previously expected. Prices remained weak even though pipeline exports to Mexico are on track to hit a record high this month.
Front-month gas futures fell 0.5 cents, or 0.3%, to settle at $1.718 per million British thermal units, the lowest close since July 1. For the week, the front-month was on track to drop about 5% after rising almost 21% in the prior two weeks.
Refinitiv said production in the Lower 48 US states averaged 88.2 billion cubic feet per day (bcfd) so far in July, up from a 20-month low of 87.0 bcfd in June but still well below the all-time monthly high of 95.4 bcfd in November. Traders noted output was rising as EQT Corp boosted production in Appalachia.
As consumers crank up their air conditioners, Refinitiv forecast US demand, including exports, will rise from 90.8 bcfd this week to 93.0 bcfd next week and 93.3 bcfd in two weeks. That, however, was lower than Refinitiv's outlook on Thursday.
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