U.S. natural gas futures fell by the largest margin in nearly three weeks as inventories exceeded the five-year average by 5.2%.

U.S. natural gas futures have declined, as traders have factored the impact of surplus inventories into pricing. U.S. natural gas futures recorded the largest drop in nearly three weeks, with traders now shifting their focus from weekly domestic inventory reports to comparisons with historical supply levels. Dennis Kisler, Senior Vice President of Trading at BOK Financial Securities, pointed out that although this week’s inventory increase was lower than market expectations, the overall natural gas inventory level is still 5.2% higher than the five-year average. This data clearly reflects that the market is currently well supplied.

Kisler also mentioned that traders forecast autumn temperatures in the coming weeks to be warmer than usual, which weakens the expected boost in gas demand that would typically occur with September warming. Meanwhile, several liquefied natural gas facilities are undergoing delayed maintenance, and market demand for liquefied natural gas is slightly lower than previously anticipated, further putting pressure on natural gas prices.