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US Natural Gas Update: Futures Slide Over 2% Amid Milder Weather Forecasts, Strong Output

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US natural gas futures fell sharply on Tuesday as markets weighed expectations for milder autumn temperatures amid elevated domestic supplies.

Both the front-month Henry Hub contract and the continuous contract declined by 2.66% to $2.708 per million British thermal units.

Near-term weather forecasts continued to soften, with the Northeast and Northwestern parts of the country expected to see near- to below-normal temperatures from September 01 through September 07, according to the National Weather Service, easing space-cooling demand and gas-fired power burn.

Meanwhile, dry gas output is expected to rise by 0.5 billion cubic feet per day, while demand is projected to decline by 0.3 Bcf/d on Tuesday, according to NRG Energy.

US LNG export feedgas flows were expected at 17.38 Bcf/d, compared to the 30-day moving average of 17.80 Bcf/d, according to the Bloomberg LNG Feedgas Model.

This comes amid the Cheniere (LNG) facility in Corpus Christi undergoing scheduled maintenance, weighing on LNG exports in the near term.

Price: $279.41, Change: $-1.38, Percent Change: -0.49%

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