FX.co ★ US Natgas Prices Rise for 2nd Session

U.S. natural gas futures have surged to $3.70 per MMBtu, mirroring broader gains in energy markets as tensions heighten in the Middle East. Over the weekend, Israel targeted two natural gas facilities in Iran, intensifying fears that the conflict may extend to energy infrastructure, potentially disrupting supplies in the region. Domestically, the rapid increase in LNG exports is fueling concerns about a tightening supply, which could lead to upward pressure on prices as the year progresses. Short-term forecasts predict above-average temperatures through June 26, potentially driving up demand for cooling. Additionally, much of the U.S. is expected to experience hotter-than-normal temperatures, likely increasing demand for gas-powered cooling, thereby putting additional strain on inventories. Furthermore, average gas production in the Lower 48 states has slightly decreased to 105.0 bcfd so far in June, down from May’s 105.2 bcfd and significantly below March’s peak of 106.3 bcfd, mainly due to routine spring maintenance.