US natural gas futures trimmed earlier gains to about $3.06 per MMBtu after rising more than 4% earlier in the session, as traders weighed robust supply against prospects for stronger demand. Prices initially advanced on expectations that a powerful winter storm in the Northeast would boost heating needs, with a severe snowstorm closing schools and disrupting air travel, thereby increasing gas consumption for both heating and power generation.
Additional support came from strong LNG export activity. Pipeline deliveries to export terminals reached 20.2 billion cubic feet on Sunday, roughly 24% higher than a year earlier and close to record highs, while average flows to the nine major facilities climbed to 18.6 bcfd in February.
However, forecasts from the National Oceanic and Atmospheric Administration indicate that temperatures are likely to be warmer than normal in the coming weeks. At the same time, US production in the Lower 48 states has reached a record 108.7 bcfd, underscoring ample supply that could limit further price gains.
