US Natgas Prices Climb Further

US natural gas futures rose further to $3.37 per MMBtu, the highest level since early February, amid expectations of stronger demand over the next two weeks. Forecasts indicate mostly above-normal temperatures through June 13, increasing the likelihood that power generators will consume more gas to meet rising air-conditioning demand. Additional support came from the latest EIA report, which showed a smaller-than-expected increase in gas storage inventories. On the supply side, gas production in the Lower 48 states averaged 109.4 billion bcfd in May, down from 109.8 bcfd in April, providing further upward pressure on prices. Meanwhile, flows to major LNG export plants fell from a monthly record high of 18.8 bcfd in April to 17.1 bcfd so far in May due to seasonal maintenance at several plants. US gas prices rallied 18.9% in May, after a 4.1 % drop in April.

Natural gas increased 5.02% to 3.2505 USD/MMBtu

US natural gas futures climbed to above $3.30 per MMBtu, their highest level since early February, after government data showed a smaller-than-expected storage build last week. The EIA reported that utilities added 92 billion cubic feet of gas to storage in the week ended May 22, below forecasts for a 95 to 96 bcf increase and lower than the 104 bcf injection recorded a year earlier. Total inventories rose to 2.483 trillion cubic feet, around 0.9% above year-ago levels and 6.2% higher than the five-year seasonal average, with the surplus over the average narrowing to 144 bcf from 149 bcf the previous week. US gas production in the Lower 48 states eased to 109.4 bcfd in May from 109.8 bcfd in April, while flows to major LNG export plants also declined due to seasonal maintenance work. Weather forecasts point to mostly normal conditions through mid-June. US gas prices are on track for a monthly gain of more than 19%, following a 4.1% decline in April.