US Natgas Future Slide 4% on Record Output, Lower Demand

As the world's top producer of natural gas, U.S. gas futures are lagging far behind global prices.

Reuters

U.S. natural gas futures slid about 4% to a two-week low on Aug. 2 on record output and forecasts for less demand over the next two weeks than previously expected.

That price decline came despite a 5% jump in European gas prices on concerns about Russian supplies and forecasts for temperatures across much of the United States to remain hotter than normal through at least mid August.

So far this summer, electric companies have already burned record amounts of gas to meet soaring power use to keep air conditioners humming. Power demand in Texas was expected to break records again this week.

Gas-fired plants have provided over 40% of U.S. power in recent weeks, according to federal energy data, even though gas futures soared about 52% in July. That is partially because coal prices keep hitting fresh record highs, making it uneconomical for some generators to use their coal-fired plants.

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