FX.co ★ Natural Gas Rises Toward $4

U.S. natural gas futures have reached $3.87 per MMBtu, marking the highest level in nearly three months. This surge is attributed to hotter-than-usual July temperatures and a rebound in LNG exports, both of which are increasing demand. Post-maintenance operations at major LNG facilities, such as Cameron, Sabine Pass, and Corpus Christi, are expected to lead to an uptick in flows to export terminals in the coming weeks. In June, the demand for LNG feedgas averaged 14.1 billion cubic feet per day (bcfd), a decrease from 15.0 bcfd in May and the record 16.0 bcfd set in April. Weather forecasts predict continuing heat across the Lower 48 states through early July, which is anticipated to further increase gas consumption for air conditioning. On the supply front, production in the Lower 48 states rose slightly to 105.3 bcfd in June, with the daily production peaking at an eight-week high of 106.4 bcfd on Monday.