US Natgas Prices Rise on Wednesday

US natural gas futures rose more than 3% to above $3.1 per MMBtu as producers reduced output and more domestic supply was redirected to LNG export terminals along the Gulf Coast. Estimated gas flows to LNG facilities reached about 18.2 billion cubic feet per day on Tuesday, up 8% from the previous week, as several export plants returned from seasonal maintenance that had temporarily redirected supply into the domestic market. Average gas production in the Lower 48 states slipped to 109.4 billion cubic feet per day so far in May, down from 109.8 billion in April. Lower output and firmer demand in recent weeks likely reduced the storage surplus to around 6% above normal, compared with roughly 7% the week before. However, below-average temperatures are expected across California through May 30 and in the Eastern US from May 31 to June 4, potentially reducing air conditioning demand and allowing more gas to flow into storage.

US natural gas futures fell to an over one-week low at around $2.98 per MMBtu as forecasts for below-normal weather pointed to weaker demand. Forecasts for below-average temperatures across California through May 30 and in the eastern half of the US between May 31 and June 4 are likely to reduce demand from electricity providers for air-conditioning. Still, further declines were limited by a drop in production and improving LNG export activity. Gas output in the Lower 48 states averaged 109.4 billion cubic feet per day so far in May, slightly below April’s 109.8 billion. At the same time, gas flows to LNG export plants increased to an estimated 18.4 billion cubic feet per day on Tuesday, nearly 9% higher than the previous week, as several facilities resumed operations following seasonal maintenance that had briefly diverted supply back into the local market.

US natural gas futures rose around 2% to $2.96 per MMBtu as producers reduced output over the US holiday weekend and more domestic supply was redirected to LNG export terminals along the Gulf Coast. Estimated gas flows to LNG facilities reached about 18.4 billion cubic feet per day on Tuesday, up nearly 9% from the previous week, as several export plants returned from seasonal maintenance that had temporarily redirected supply into the domestic market. Average gas production in the Lower 48 states slipped to 109.4 billion cubic feet per day so far in May, down from 109.8 billion in April. Lower output and firmer demand in recent weeks likely reduced the storage surplus to around 6% above normal, compared with roughly 7% the week before. However, below average temperatures are expected across California through May 30 and in the Eastern US from May 31 to June 4, potentially reducing air conditioning demand and allowing more gas to flow into storage.