US natural gas futures rose to $2.93 per MMBtu, a seven-week high, after a storage build in line with expectations and a further decline in output. The EIA reported a storage injection of 85 bcf for the week ended May 8, matching consensus estimates, below the 109 bcf build recorded a year earlier and broadly in line with the five-year average increase of 84 bcf.
On the supply side, production continued to contract as several producers, including EQT, curtailed activity in response to persistently weak spot prices, pushing daily output to a 15-week low. At the same time, gas flows to major US LNG export facilities have eased from a record 18.8 bcfd in April to about 17.0 bcfd so far in May, with daily volumes also at a 15-week low amid seasonal maintenance at plants such as Golden Pass and Freeport LNG.
Weather forecasts indicate mostly seasonal conditions through late May, limiting the potential for a near-term boost in demand from cooling needs.
