FX.co ★ US Natgas Prices Rise to 1-Week High

U.S. natural gas futures recently increased to $3.40 per MMBtu, marking the highest level in a week. This surge was spurred by reduced production, anticipated heightened demand, and forecasts predicting hotter weather conditions. In May, production in the Lower 48 states averaged 105.0 billion cubic feet per day (bcfd), a decrease from the record 105.8 bcfd seen in April. This decline partially resulted from pipeline maintenance work, including activities on Kinder Morgan's Permian Highway. Concurrently, weather predictions indicating above-normal temperatures through mid-June have heightened the demand for gas, particularly for air conditioning purposes. Additionally, the flow of gas to U.S. LNG export facilities fell to 15.1 bcfd in May, down from April's record 16.0 bcfd, mainly due to ongoing maintenance at plants such as Cameron, Corpus Christi, Sabine Pass, and Freeport. Looking forward, LNG feedgas levels are anticipated to remain below April's peak, with maintenance activities planned by Cheniere at Sabine Pass from June 2 to June 23.