US natural gas futures fell more than 3% to below $3.20 per MMBtu, pulling back from a nearly three-month high of $3.29 reached in the previous session as traders reassessed supply and demand conditions. Weather forecasts still indicate predominantly above-normal temperatures through June 13, a pattern that is likely to lift gas consumption by power generators as air conditioning use rises.
On the supply side, natural gas output in the Lower 48 states averaged 109.4 billion cubic feet per day in May, slightly down from 109.8 bcfd in April. At the same time, feedgas deliveries to major US LNG export terminals slipped to 17.1 bcfd from a record 18.8 bcfd in April, reflecting seasonal maintenance at several facilities.
Despite the latest pullback, US natural gas prices still advanced 18.9% in May, reversing a 4.1% decline recorded in April.
