US Natgas Prices Fall to Over 2-Week Low

US natural gas prices fell more than 3% to below $3.10/MMBtu on Thursday, hitting the lowest level in over two weeks after a larger-than-expected storage build. The EIA reported that US energy firms added 108 billion cubic feet of gas to storage last week, above forecasts of 101 bcf. Total inventories rose to 2.686 trillion cubic feet, around 6% above the five-year average, signaling ample supply. Warmer-than-normal weather is expected through June 26, which could boost gas demand from power generators. Meanwhile, average US LNG export flows fell to 16.5 bcfd in June from 17.1 bcfd in May due to maintenance at plants including Golden Pass LNG and Freeport LNG in Texas. US Lower 48 gas production also declined to 109.0 bcfd in June from 109.7 bcfd in May.

US natural gas prices edged up to $3.19 per MMBtu, supported by forecasts for above-normal temperatures in the second half of June, which are expected to boost cooling demand. However, prices remain below the recent highs seen earlier in the month. According to LSEG, average gas production in the US Lower 48 has eased to 108.8 billion cubic feet per day in June, down from 109.7 bcfd in May. While the decline in output has helped narrow the storage surplus, inventories remain about 5% above the five-year seasonal average, pointing to broadly comfortable supply conditions heading into the summer. Meanwhile, net flows to major LNG export terminals have fallen to 16.3 bcfd so far in June from 17.1 bcfd in May, as seasonal maintenance at facilities including Golden Pass and Freeport LNG in Texas continues to weigh on export volumes.

US natural gas prices held onto most of their losses at around $3.14 per MMBtu after retreating from a 16-week high, pressured by ample inventories and weaker LNG export flows. Although lower output in recent weeks has helped reduce the storage surplus, inventories remain around 5% above the five-year seasonal average, indicating broadly comfortable supply conditions heading into the summer period. Adding to this, net flows to major LNG export terminals fell to 16.3 bcfd so far in June from 17.1 bcfd in May, as seasonal maintenance at facilities including Golden Pass and Freeport LNG in Texas continues to limit exports. Still, prices found support from prospects of higher weather-driven demand, with forecasts pointing to mostly above-normal temperatures through June 24.