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Energy Prices · LNG Exports · Natural Gas · Weather Demand
US natural gas prices advanced over 2% to $3.29 per MMBtu on June 24, driven by hotter weather forecasts, increased LNG export activity, and a decline in domestic production, while investors awaited weekly inventory data.
Forecasters predict above-average temperatures across the mid-Atlantic and Upper Midwest through July 3, which boosts gas-for-power demand. Expectations of a smaller-than-average storage build also supported prices, with inventories forecast to increase by 67 bcf for the week ended June 19, below the five-year average gain of 75 bcf for the period.
LNG export activity improved, with average gas flows to major US LNG export facilities rising to 17.3 bcfd in June from 17.1 bcfd in May, partly driven by record feedgas at the Golden Pass facility. Furthermore, production in the US Lower 48 states fell to 109.5 bcfd in June from 109.7 bcfd in May.
This combination of increased demand and constrained supply pushed prices higher.
US Natgas Prices Surge on Heat, Supply Squeeze(current)
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