US natural gas futures climbed to about $2.87 per MMBtu, returning to levels near a six-week high, supported by lower production and improving demand expectations. Output has eased in recent weeks as several producers, including EQT, curtailed supply in response to persistently weak spot prices.
Forecasts now indicate that gas demand in the Lower 48 states, including exports, will average roughly 98.9 bcfd both this week and next, with the latest estimates revised slightly higher from prior projections. At the same time, gas flows to major US export terminals have declined from a recent monthly record, reflecting seasonal maintenance at several facilities, notably Freeport LNG in Texas and Cameron LNG in Louisiana.
Market participants are now focused on the upcoming weekly storage report, which is expected to show that the surplus in inventories relative to the five-year average has remained largely unchanged.
