FX.co ★ TTF Prices Rise by Over 6%

US natural gas futures surged over 6% to exceed $3.325 per MMBtu on Tuesday. This increase was sparked by a decrease in daily production coupled with projections of stronger demand for the upcoming week. Average production in the Lower 48 states has decreased to 103.9 billion cubic feet per day thus far in May, down from a record-breaking 105.8 billion cubic feet per day in April. This drop is partly attributed to maintenance activities on critical pipelines, such as Kinder Morgan's Permian Highway. Looking forward, there is growing optimism for a rebound in demand if summer heat makes an appearance, possibly around mid-to-late June. Concurrently, gas flows to eight major LNG export facilities decreased to 15.1 billion cubic feet per day in May, compared to 16.0 billion cubic feet per day in April. This reduction is due to maintenance at the Cameron LNG and Cheniere Energy's Corpus Christi facilities, along with temporary disruptions at Freeport LNG, which have limited export volumes.