US Natgas Prices Hold Gains

US natural gas prices hovered around $3.14 per MMBtu on Tuesday after settling 0.9% higher in the previous session, supported by signs of a rebound in LNG export activity. Flows to LNG export terminals increased 13.2% week-on-week on Monday, reaching a six-week high of 19.3 billion cubic feet per day. Expectations of stronger cooling demand as temperatures rise into early July also supported prices, as this typically lifts power-sector gas consumption. However, gains remain capped by strong domestic supply conditions. US natural gas inventories stood at 2.686 trillion cubic feet as of June 5, about 6% above the five-year seasonal average.

US natural gas prices fell 2% to around $3.0 per MMBtu on Monday, their lowest level in nearly three weeks, tracking broader declines across energy markets following a US–Iran peace deal. Both sides confirmed they have reached an agreement to end their war, with President Donald Trump stating that Washington will end its naval blockade of Iranian ports and that the Strait of Hormuz, a key chokepoint for a fifth of the world’s oil and LNG supplies, will reopen once the agreement is formally signed on June 19. Additional downward pressure came from strong domestic supply conditions. US gas inventories have risen to 2.686 trillion cubic feet, around 6% above the five-year seasonal average, signaling a well-supplied market. However, losses may be limited by improving demand prospects, with a recovery in LNG exports, along with forecasts for higher cooling demand as temperatures rise into early July.

US natural gas prices extended their losses toward $3.0/MMBtu, 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.