US Natural Gas Prices May Rebound This Fall Amid Rising LNG Exports

US natural gas prices may be poised for a rebound this fall as international LNG prices and US exports recover. According to LS Securities, strong global LNG prices could spill over into US natural gas prices, given that domestic inventories remain above the five-year average.

The firm cited rising US LNG exports and increased imports by Europe and Asia ahead of winter as factors contributing to the potential rebound. Hong Sung-ki, an analyst at LS Securities, noted that European natural gas inventories currently stand at about 65% of storage capacity, with stockpiles drawn down quickly last winter.

The United States Natural Gas Fund (UNG), a US natural gas futures ETF, has risen 6.33% over the past month. However, if the Iran situation eases faster than expected or the recovery in US LNG exports loses momentum again, the case for a price rebound could weaken.