US natural gas futures climbed to $2.92 per MMBtu, a two-week high, driven by expectations of stronger demand over the next fortnight. Weather forecasts indicate that conditions will remain mostly warmer than normal through August 7, likely increasing gas consumption by power generators for air conditioning.
Upside momentum was limited, however, by an EIA report showing that US energy firms injected 32 bcf of gas into storage for the week ended July 17, above the five-year average build of 30 bcf. Overall inventories remained 6.4% above their five-year seasonal average, underscoring ample supply.
Production also stayed robust: average gas output in the Lower 48 states has risen to 110.4 bcfd so far in July, up from 110.0 bcfd in June. At the same time, feedgas flows to major LNG export terminals edged down to 17.2 bcfd in July to date, compared with 17.4 bcfd in June, partly reflecting scheduled maintenance at Freeport LNG’s export plant in Texas.
Additionally, Tropical Storm Bertha represents a potential risk for LNG export infrastructure along the US Gulf Coast.
