US Natgas Prices Spike on Heat Wave, Record LNG Flows

US natural gas futures rose by about 3% on Tuesday due to increasing flows to liquefied natural gas (LNG) export plants and forecasts for record power demand caused by a heat wave.

The front-month gas futures for August delivery on the New York Mercantile Exchange increased by 10.2 cents, or 3.2%, to $3.283 per million British thermal units.

Analysts from financial group LSEG reported that average gas output in the US Lower 48 states rose to 110.0 billion cubic feet per day (bcfd) so far in June, up from 109.7 bcfd in May.

The high temperatures expected in New York will reach 100 degrees Fahrenheit on Thursday and Friday, which would tie a record set in 1966.