US Natgas Prices Rise for 3rd Day

US natural gas prices climbed more than 2% to $3.2 per MMBtu, extending gains for a third consecutive session, on expectations of stronger demand from warmer weather and improving LNG export activity. Forecasts indicate temperatures will remain above normal through July 1, likely increasing gas consumption from power generators as air conditioning demand rises. Also, flows to LNG export terminals rose 13.2% week-on-week on Monday, reaching a six-week high of 19.3 billion cubic feet per day. However, average gas deliveries to the nine major US LNG export facilities slipped to 17.0 bcfd so far in June due to seasonal maintenance at several sites, including ExxonMobil and QatarEnergy’s Golden Pass facility and Freeport LNG in Texas. US Lower 48 gas production has also eased, averaging 109.3 bcfd so far in June compared with 109.7 bcfd in May.

US natural gas prices rose to around $3.17 per MMBtu on Tuesday, extending gains for a third consecutive 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.