US natural gas futures slid for a second straight session after a larger-than-expected government storage build, even as forecasters flagged a coming heat wave. The retreat came as US pipeline exports to Mexico set an all-time monthly record.
August natural gas futures fell for a second consecutive session as the market absorbed bearish inventory data. The US Energy Information Administration reported a storage build of 87 billion cubic feet, topping expectations and lifting total supplies to 2,922 billion cubic feet.
The weather picture pulls the other way. Hot conditions and strong high pressure across the eastern US are expected to support consumption in the near term, and domestic demand is anticipated to stay elevated despite the bearish inventory data. That set heavy supply against heat-driven demand on the futures contract.
Demand is also building south of the border. Mexico’s imports of US pipeline gas hit an all-time record in June of 8.35 Bcf/d, according to Natural Gas Intelligence calculations, with new power plants lifting consumption. July flows started even stronger.
Sources: MarketScreener, Natural Gas Intelligence (snippet-based)
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