US Natural Gas Prices Surge on Heat Demand, LNG Exports

Natural gas futures have been on an upward trend, ending last week at $2.773 per MMBtu and rising again in early Monday trading to around $2.83.

The hotter outlook is supporting gas demand as higher temperatures increase air-conditioning use and electricity consumption, raising demand from gas-fired power generation.

Storage data are also becoming more supportive, with recent injections into US inventories smaller than normal due to stronger power-sector demand absorbing more supply.

Liquefied natural gas (LNG) demand is another increasingly important factor, with maintenance at major US export facilities limiting feedgas consumption during the summer and leaving more natural gas in the domestic market.