US natural gas prices inched up to $3.19 per MMBtu, supported by forecasts for above-normal temperatures in the second half of June, which are expected to lift cooling demand. Still, prices remain below the recent peaks reached earlier in the month.
Data from LSEG show that average gas output in the US Lower 48 has eased to 108.8 billion cubic feet per day so far in June, down from 109.7 bcfd in May. The pullback in production has helped trim the storage surplus, but inventories are still about 5% above the five-year seasonal average, indicating generally comfortable supply conditions heading into summer.
At the same time, net flows to major LNG export terminals have declined to 16.3 bcfd so far in June from 17.1 bcfd in May, as seasonal maintenance at facilities including Golden Pass and Freeport LNG in Texas continues to weigh on export volumes.
