FX.co ★ US Natgas Prices Edge Down

U.S. natural gas futures have declined to below $3.70 per MMBtu, largely due to a decrease in demand expectations and a reduction in LNG export flows. In June, the average gas sent to the eight key U.S. LNG export terminals has been 13.8 billion cubic feet per day (bcfd), declining from 15.0 bcfd in May and compared to April's record high of 16.0 bcfd. This reduction is primarily attributed to routine spring maintenance, including operations at Cheniere Energy's facilities. Analysts anticipate that gas stockpiles, which are already 4% higher than the five-year average, will have increased more than usual for the seventh consecutive week. Concurrently, temperatures are predicted to be warmer than usual through mid-June. On the supply front, the average gas production in the Lower 48 states has marginally decreased to 104.0 bcfd in June, from 105.2 bcfd in May and March's record of 106.3 bcfd.