US natural gas prices climbed more than 3% to nearly $3.30 per MMBtu, supported by stronger flows to liquefied natural gas (LNG) export terminals and forecasts for record power demand. A severe heat wave is sweeping the country, forcing households and businesses to rely heavily on air conditioning. In New York City, temperatures are expected to reach 100 degrees Fahrenheit, potentially matching a record set in 1966.
With meteorologists calling for above-normal heat through mid-July, gas-fired power plants—which supply roughly 40% of US electricity—are projected to significantly increase fuel consumption. At the same time, average gas flows to major LNG export facilities rose to 17.4 billion cubic feet per day in June.
On the supply side, production in the Lower 48 states increased to an average of 110.0 billion cubic feet per day in June, up from 109.7 billion in May. National inventories are also expected to rise, reaching a level about 5.9% above the seasonal norm.
