FX.co ★ US Natgas Prices Snap 5-Day Losing Streak

U.S. natural gas futures experienced a notable 5% increase, reaching $3.7 per MMBtu on Friday, effectively ending a five-day decline. This uptick corresponds with a resurgence in liquefied natural gas (LNG) export activities. In June, gas flows to the eight major U.S. LNG facilities averaged 14.2 billion cubic feet per day (bcfd), which, despite being lower than May's average of 15 bcfd and April’s record of 16 bcfd, marks an improvement since some facilities have recommenced operations post-maintenance. Weather forecasts predict temperatures above the seasonal average across the Lower 48 states through at least July 12, though not expected to reach the extreme levels observed earlier this week. On the supply front, gas production averaged 105.6 bcfd in June, an increase from May’s 105.2 bcfd, yet still trailing behind March’s record 106.3 bcfd, largely attributable to pipeline maintenance activities carried out in the spring. Concurrently, after ten consecutive weeks of higher-than-average storage injections, analysts anticipate a tapering in additions this week, as utilities increased their gas consumption for power generation amid recent heat waves.