FX.co ★ US Natgas Prices Hover at 3-Week High

U.S. natural gas futures have recently stabilized around $3.56 per MMBtu, marking the highest level observed in the past three weeks. This surge is primarily attributed to the heightened demand for cooling due to an unexpected rise in temperatures. Consequently, power generators are increasing their gas consumption to accommodate the soaring air conditioning requirements. Weather forecasts indicate sustained high temperatures across the Lower 48 states, projecting that the peak heat of the summer could unfold next week. Furthermore, LNG exports have shown a significant increase, with average flows to export terminals reaching 15.8 billion cubic feet per day (bcf/day) in July, up from 14.3 bcf/day in June, as several facilities rebound from maintenance and outages. Natural gas production is likewise on the upswing, reaching 107.0 bcf/day this month, which surpasses the previous record of 106.4 bcf/day set in June. In parallel, a federal report highlighted that robust production enabled energy companies to inject 46 billion cubic feet into storage during the week ending July 11—well above the 18 bcf recorded last year and exceeding the five-year average of 41 bcf. Current gas stockpiles are approximately 6.2% higher than the seasonal average.