Natural Gas Prices Rise Despite Domestic Production Pressures

US natural gas prices rose last week for the second consecutive week, but the outlook remains uncertain due to strong domestic production and high storage levels.

The increase in demand for electricity driven by hot weather helped support natural gas use by power plants. However, record US production and above-normal storage levels limited price gains.

Despite these challenges, natural gas prices ended the week with a 1.5% weekly gain, settling at $2.773 per MMBtu on Friday.

The outlook for natural gas prices is expected to improve in the coming months due to increased demand from LNG exports and colder weather later in the year.