US gas prices decline amid significant fuel inventory growth

On Thursday, US natural gas prices fell by about 6% to a one-month low amid a significant weekly inventory build-up and increased fuel production. This will allow energy companies to inject more gas into storage than usual in the coming weeks, Reuters reports.

According to data from the Energy Information Administration (EIA), companies injected 96 billion cubic feet (bcf) of gas into storage during the week ending June 20. This marks the tenth consecutive week when US storage injections have exceeded the five-year average for this time of year.

The actual storage build surpassed the 88 bcf forecast by Reuters analysts. During the same period last year, inventories increased by 59 bcf.

Weather service AccuWeather states that Tuesday this week marked the hottest day in over a decade for millions of residents across the US Northeast. The extreme heat triggered surging air conditioning use, driving electricity prices to their highest levels since January and stressing regional power grids.