U.S. natural gas prices fall amid record production and new pipeline capacity

U.S. natural gas prices have continued to decline, falling to $2.87 per MMBtu as traders weigh increased supply prospects. Average natural gas production across the lower 48 states reached a record 111.4 Bcf/d in August, up from 110.7 Bcf/d in July.

Supply growth is expected to be bolstered by the upcoming operation of Energy Transfer LP’s Hugh Brinson Pipeline on September 1, which will transport approximately 2.2 Bcf/d from the Permian Basin to eastern Texas. Additionally, demand at LNG export facilities is improving as plants in Corpus Christi and Freeport, Texas, resume operations following maintenance.

Price declines were partially mitigated by weather forecasts from the Commodity Weather Group, which predicts above-average temperatures for two-thirds of the eastern U.S. between September 2 and 11, potentially sustaining high cooling demand.

In broader energy markets, crude oil prices rose, with West Texas Intermediate (WTI) increasing 2.15% to $85.19 per barrel and Brent crude rising 2.47% to $90.28 per barrel. Low-sulfur diesel futures also saw gains.