Nat-Gas Prices Plunge as EIA Inventories Climb and US Temps Cool

Core Insights - Natural gas prices experienced a significant decline, closing down by 5.19% due to a larger-than-expected increase in inventories [1] - Cooler weather forecasts for late September are expected to reduce demand for natural gas from electricity providers [2] - Increased U.S. natural gas production has contributed to bearish market conditions, with production forecasts for 2025 being raised [3] Inventory and Production - The EIA reported a rise of 90 billion cubic feet (bcf) in natural gas inventories for the week ending September 12, exceeding market expectations of 81 bcf and the five-year average of 74 bcf [1][6] - U.S. dry gas production was recorded at 107.2 bcf/day, reflecting a year-over-year increase of 5.7% [4] - The EIA's updated forecast indicates a 0.2% increase in U.S. natural gas production for 2025, now estimated at 106.63 bcf/day [3] Demand and Market Conditions - Lower-48 state gas demand decreased to 74.0 bcf/day, a decline of 0.8% year-over-year [4] - Electricity output in the U.S. rose by 0.83% year-over-year to 81,346 GWh for the week ending September 13, indicating some support for gas prices [5] - As of September 16, European gas storage was 81% full, compared to the five-year seasonal average of 87% [6]