FX.co ★ US Natgas Prices Fall by Over 2% after EIA Data

U.S. natural gas futures experienced a decline of over 2%, settling at $3.62 per MMBtu, following a storage level increase that exceeded expectations. The Energy Information Administration (EIA) disclosed a storage build of 122 billion cubic feet (bcf) for the week ending May 30, surpassing the anticipated 111 bcf. This development represents the seventh consecutive week of injections above the norm, raising total inventories to 2.598 trillion cubic feet, which is 4.7% above the five-year average. In addition, gas flows to major LNG export terminals have decreased to 13.8 billion cubic feet per day (bcfd) in early June, down from 15.0 bcfd in May, primarily due to routine maintenance at facilities like Cheniere's. Concurrently, weather forecasts predict warmer-than-usual conditions through mid-June. On the supply side, average gas production in the Lower 48 states has slightly decreased to 104.0 bcfd in June, compared to 105.2 bcfd in May and March's record high of 106.3 bcfd.