US natural gas prices climbed to about $3.24 per MMBtu as hotter weather forecasts boosted expectations for demand, while investors awaited the latest weekly storage report. Meteorologists project above-average temperatures across the mid-Atlantic and Upper Midwest through July 3, a pattern that is likely to increase gas-fired power consumption.
Prices also drew support from expectations of a smaller-than-normal storage build. Inventories for the week ended June 19 are projected to rise by 67 bcf, below the five-year average increase of 75 bcf for the same period.
Additional upside came from stronger LNG export activity. Average gas flows to major US LNG export terminals have increased to 17.3 bcfd so far in June from 17.1 bcfd in May, helped in part by record feedgas deliveries to the Golden Pass facility. At the same time, dry gas output in the US Lower 48 states has edged down to 109.5 bcfd so far in June, compared with 109.7 bcfd in May.
