US Natgas Prices Snap 3-Day Winning Streak

US natural gas prices fell more than 3% to $3.12 per MMBtu on Wednesday after three consecutive sessions of gains, as traders weighed demand expectations, weather forecasts and supply trends. Temperatures are expected to remain above normal through July 1, which could support stronger gas consumption from power generators as air conditioning demand increases. However, LNG export activity has softened, with average gas deliveries to the nine major US LNG export terminals declining to 17.0 billion cubic feet per day so far in June due to seasonal maintenance at several facilities, including ExxonMobil and QatarEnergy’s Golden Pass project and Freeport LNG in Texas. Domestic supply has also edged lower, with US Lower 48 gas production averaging 109.3 bcfd in June, down from 109.7 bcfd in May.

US natural gas prices extended their gains, climbing to around $3.25 per MMBtu 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.