US Natgas Prices Soar to Five-Week High on LNG Export Hopes

US natural gas futures rose to a five-week high on Monday due to hotter-than-normal weather forecasts through mid-September and increased expectations for liquefied natural gas (LNG) exports. The front-month gas futures contract for October delivery on the New York Mercantile Exchange (NYMEX) gained 2.0 cents, or 0.7%, to $2.908 per million British thermal units (mmBtu), marking its highest close since July 23.

The contract is also on track to gain about 5% in August after dropping around 16% in July. Speculators have increased their long futures and options contracts on the NYMEX, with the number of such contracts rising to its highest since September 2021, according to the US Commodity Futures Trading Commission's Commitments of Traders report.

However, the premium of futures for November over October has fallen to its lowest since March 2025, suggesting that the market is not overly concerned about meeting demand this winter. The average gas output in the US Lower 48 states rose to 111.5 billion cubic feet per day (bcfd) in August, up from a monthly record high of 110.7 bcfd in July.