US Natural Gas Futures Surge as LNG Exports Rise
US natural gas futures rose about 4% to a one-week high on Monday as daily flows to liquefied natural gas export plants increased. The front-month gas futures contract for September delivery on the New York Mercantile Exchange (NYMEX) climbed 9.5 cents, or 3.6%, to $2.757 per million British thermal units (mmBtu). This puts the contract on track for its highest close since August 3.
Speculators boosted their net short futures and options positions on the NYMEX and Intercontinental Exchange to their highest levels since February 2024, according to the US Commodity Futures Trading Commission’s Commitments of Traders report. Average gas output in the US Lower 48 states rose to 111.2 billion cubic feet per day (bcfd) so far in August, up from a monthly record high of 110.7 bcfd in July.
Energy firms have been able to keep gas inventories higher than the five-year average since March due to record output and mild spring weather this year. However, analysts predict that gas inventories will ease to 6.6% above normal during the week ended August 7, down from 6.7% above normal the previous week.
Power generators are expected to continue burning significant volumes of gas to keep air conditioners running, as meteorologists forecast warmer-than-normal temperatures through August 25. About 40% of US power generation comes from gas-fired plants.