FX.co ★ US Natgas Prices Set for Weekly Gain

U.S. natural gas futures have climbed to $3.7 per MMBtu, poised for an 8% rise over the week, primarily spurred by decreased production levels. Production in the Lower 48 states has averaged 104.0 billion cubic feet per day (bcfd) in June, a decline from 105.2 bcfd in May and a record peak of 106.3 bcfd in March. Predictions of warmer-than-average weather through mid-June have bolstered prices by heightening demand forecasts. Nonetheless, prices experienced a dip of over 1% on Thursday following the Energy Information Administration's (EIA) announcement of a storage build-up of 122 billion cubic feet (bcf) for the week ending May 30, surpassing the expected 111 bcf. This represents the seventh straight week of above-normal injections, pushing total inventories to 4.7% over the five-year average. Simultaneously, gas flows to the primary U.S. liquefied natural gas (LNG) export terminals have decreased to 13.8 bcfd in early June from 15.0 bcfd in May, primarily attributed to routine seasonal maintenance activities, including those at Cheniere Energy's facilities.