FX.co ★ US Natural Gas Prices Increase

US natural gas futures climbed to $2.92 per MMBtu on Friday, rebounding after a 1.5% decline in the previous session, as traders balanced expectations of sustained heat and stronger LNG export activity against still-plentiful domestic supplies.

Persistently hot weather across the continental US has kept cooling demand elevated, bolstering gas consumption for power generation. At the same time, average gas flows to the nine major US LNG export terminals increased to 18.3 bcfd in early September, up from 17.2 bcfd in August, as key facilities in Texas resumed full operations following maintenance.

These developments have aligned with firmer international demand for US LNG in Europe and Asia, where buyers are rebuilding inventories ahead of the winter heating season amid ongoing disruptions to LNG shipments from the Persian Gulf.

However, ample domestic supply continues to cap price gains. Gas inventories stood 5.2% above their five-year seasonal average as of August 28, while average production in the Lower 48 states remained near record highs.