Natural gas is up by 5.02%

US natural gas futures fell about 2% to $3.255/MMBtu, pulling back from a more than 16-week high reached in the previous session. LNG export demand softened as average gas flows to the nine major US export terminals declined to 16.4 billion cubic feet per day so far in June from 17.1 bcfd in May, largely due to seasonal maintenance at facilities including Golden Pass and Freeport LNG in Texas. Despite the drop in exports, weather forecasts point to above-normal temperatures through June 20, likely increasing gas consumption for power generation as cooling demand rises. On the supply side, output in the Lower 48 states averaged 108.8 bcfd so far this month, down from 109.7 bcfd in May. Analysts noted that mild spring weather allowed inventories to build at a faster pace than usual, although recent production declines likely narrowed the storage surplus to around 5% above normal from roughly 6% a week earlier. For the week, natural gas prices are down more than 1%.

Natural gas increased 5.02% to 3.3753 USD/MMBtu

US natural gas futures rose past $3.3 per MMBtu, the highest in four months, as supply from the Middle East remained very tight and domestic demand increased. Israel and Lebanon continued to exchange strikes to strain their ceasefire, limiting the likelihood of an imminent agreement between the US and Iran that would lift the tanker blockade from the Persian Gulf. Exports of liquified natural gas from the region have slumped since the start of the war in March, driving European and Asian consumers to increase their dependency on US supplies. Consequently, the latest data from the EIA showed that US LNG exports rose to a record high of 573.5 billion cubic feet gaseous equivalent. Meanwhile, forecasts of higher temperatures in the US northeast increased the outlook of gas-intensive air conditioning, also lifting prices. Consistently, inventory in the US rose by 95 bcf, below forecasts of a sharper 101 bcf build.