US natural gas futures climbed about 2% to $3.07 per MMBtu as producers curtailed output and a larger share of domestic supply was routed to LNG export terminals along the Gulf Coast. Estimated gas flows to LNG facilities reached roughly 18.2 billion cubic feet per day on Tuesday, up 8% from the prior week, as several export plants came back online following seasonal maintenance that had temporarily diverted volumes into the domestic market.
Average gas production in the Lower 48 has eased to 109.4 billion cubic feet per day so far in May, down from 109.8 billion cubic feet per day in April. The combination of lower output and stronger demand in recent weeks has likely narrowed the storage surplus to about 6% above normal, compared with roughly 7% a week earlier.
Still, forecasts call for below-average temperatures across California through May 30 and in the Eastern US from May 31 to June 4, which could dampen air-conditioning demand and allow additional gas to be injected into storage.
