FX.co ★ US Natgas Rises to 4-Week High

Natural gas futures in the U.S. have risen to approximately $3.80 per MMBtu, marking the highest level in the past four weeks. This increase is attributed to declining production and anticipated greater demand. In early June, production in the Lower 48 states averaged 104.0 billion cubic feet per day (bcfd), a decrease from 105.2 bcfd in May and an all-time high of 106.3 bcfd recorded in March. Forecasts indicate above-normal temperatures through the middle of June, leading to heightened demand for cooling. On the export front, liquefied natural gas (LNG) shipments have averaged 13.8 bcfd so far in June, falling short of 15.0 bcfd in May and the record 16.0 bcfd seen in April. This decline is primarily due to seasonal maintenance activities, particularly at Cheniere Energy's facilities. Meanwhile, investors are keeping a close eye on upcoming data from the Energy Information Administration (EIA), which is expected to reveal an increase in natural gas inventories for the seventh consecutive week, surpassing typical levels for this time of year.