After the EIA report, the decline in US natural gas prices widened

US natural gas futures fell towards $2.05 per mmBTU after the EIA reported a higher-than-expected increase in reserves.

US utilities stored 22 billion cubic feet (Bcf) of gas last week, exceeding market expectations of 15 Bcf.

Gas storage is currently 16.4% above the 5-year average.

Natural gas prices were negative for the second week due to increased production.

Due to price increases in April and May, drillers like EQT and Chesapeake Energy moved to increase production.

The average daily gas production volume in July in the 48 lower states was 102.4 Bcf, which was higher than the 100.2 Bcf in June and 99.4 Bcf in May, which was the low level for the first time in 17 months.

However, since intense heat is expected in August, gas consumption for power generation to run air conditioners should increase.