US natural gas futures rise to $2.92/MMBtu on Friday
US natural gas futures rose to $2.92 per MMBtu on Friday after sliding 1.5% in the prior session as hot-weather cooling demand and higher LNG export flows offset ample US supply.
US natural gas futures rose to $2.92 per MMBtu on Friday after sliding 1.5% in the previous session, as investors weighed forecasts for hot weather and improving LNG export activity against ample domestic supplies.
Hot weather across the continental US kept cooling demand elevated, supporting gas consumption for power generation.
At the same time, average gas flows to the nine major LNG export plants rose to 18.3 bcfd in early September, up from 17.2 bcfd in August, as major facilities in Texas returned to full operations after maintenance.
The developments coincided with stronger demand for US LNG in Europe and Asia, where buyers are seeking supplies to replenish storage ahead of the winter heating season, amid continued disruptions to LNG flows from the Persian Gulf.
Still, abundant domestic supplies are limiting the upside for prices.
Gas inventories were 5.2% above their five-year seasonal average, while average production in the Lower 48 states remained at record highs.