Nat-Gas Prices Erase Early Gains on Expectations for EIA Inventories to Build

Core Insights - Natural gas prices experienced a slight decline, closing down by 0.10% due to expectations of a larger-than-average build in weekly inventories [1] - Forecasts for late summer heat in the US are expected to boost natural gas demand, which may limit inventory buildup ahead of the winter heating season [2] - Increased US natural gas production has been a bearish factor for prices, with the EIA raising its 2025 production forecast [3] Inventory and Production - The consensus anticipates a rise of 81 billion cubic feet (bcf) in natural gas inventories for the week ending September 12, surpassing the five-year average of 74 bcf [1] - US dry gas production reached 106.0 bcf/day, marking a 5.0% year-over-year increase, while demand was 73.3 bcf/day, up 0.6% year-over-year [4] - The EIA reported a 71 bcf increase in inventories for the week ending September 5, exceeding market expectations and indicating adequate supply levels [6] Demand Factors - Electricity output in the US rose by 0.83% year-over-year to 81,346 GWh for the week ending September 13, supporting natural gas prices [5] - Forecasts indicate warmer temperatures across the US, particularly in the north-central region, which is expected to increase natural gas demand for electricity generation [2]