US natural gas futures climbed to about $3.23 per MMBtu as traders awaited the latest weekly storage report, which is expected to show a modest expansion in the supply surplus. Prices continue to find support from weather-driven demand, with forecasts calling for predominantly above-normal temperatures through June 18, a pattern that should boost gas-fired power generation as air-conditioning loads increase.
On the supply side, average output in the Lower 48 has slipped to 109.0 bcfd so far in June, down from 109.7 bcfd in May. This recent pullback in production has likely narrowed the storage surplus to roughly 5.9% above the seasonal norm for the week ended May 29, from 6.2% a week earlier.
Even so, further upside has been capped by softer LNG demand. Average feedgas deliveries to major LNG export facilities have declined from 17.1 bcfd in May to 16.3 bcfd so far in June, reflecting ongoing seasonal maintenance at several plants.
