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US Natural Gas Posts 3rd Weekly Gain on Tighter Storage, Strong Demand Outlook

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US natural gas markets advanced over the week, supported by a tighter-than-expected storage injection, rising electricity demand and forecasts calling for warmer weather across much of the country.

The Nymex front-month July contract rose to $3.27 per million British thermal units from $2.92/MMBtu on May 22.

The front-month June contract price dropped to $3.095/MMBtu from $3.155/MMBtu on May 20, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released on Thursday.

Natural gas spot prices dropped by $0.04/MMBtu to $3.15/MMBtu during the week ended May 27, according to the EIA, from $3.19/MMBtu the prior week.

This comes amid a 1.2-billion-cubic-feet-per-day, or 2% increase in total US natural gas consumption during the week, led by a 1.9 Bcf/d, or 6%, rise in demand from the electric power sector due to a short-lived heatwave last week, which boosted air-conditioning demand.

Broader consumption trends remain firm. Estimated US gas use in March 2026 reached 2,779 Bcf, or 89.6 Bcf/d, up 1% from a year earlier, the EIA said in its latest Natural Gas Monthly report. The electric power sector led gains, increasing gas demand by 10.6% to 29.6 Bcf/d.

At the same time, natural gas supplies rose slightly by 0.2 Bcf/d, or less than 1%, due to incremental growth in dry natural gas production, according to data from LSEG.

Preliminary EIA figures show dry gas output still expanding on an over-the-year basis, rising for a 12th straight month in March to 110.9 Bcf/d, up 3.3% from a year earlier.

The EIA reported that the US exported 3.7 times as much natural gas as it imported in March. Imports fell 9.1% to 7.7 Bcf/d, while exports jumped 18.3% to a record 28.7 Bcf/d.

Meanwhile, LNG feedgas flows recovered after hitting their lowest level in 16 weeks last Tuesday, at 15.1 Bcf, to average 17.5 Bcf/d, according to NRG Energy, as major LNG facilities shut down for spring maintenance started coming back online.

Prices were mixed across regional hubs, ranging from a $0.16/MMBtu decrease in Transco Zone 3 to a $2.62/MMBtu increase at the Waha Hub in West Texas.

At the Florida Gas Zone 3, prices rose $0.13/MMBtu to $3.50/MMBtu on Wednesday, touching their highest daily average spot price this spring, with temperatures around the Orlando area increasing by 3 degrees Fahrenheit to 84 degrees Fahrenheit over the week.

The net injection into storage for the week ended May 22 was 92 Bcf, down from 101 Bcf the prior week, bringing total gas inventories to 2,483 Bcf, according to EIA data.

The injection was below analyst forecasts of 96 Bcf, according to data compiled by Investing.com, indicating a narrower storage surplus.

During the same period last year, the EIA reported a net injection of 104 Bcf, while the five-year average for this period was 97 Bcf.

All regions reported a net injection of working gas into storage for the week ended May 22, with the Midwest region seeing a net build of 34 Bcf, the East adding 28 Bcf, and the South Central region reporting a build of 21 Bcf.

According to Pinebrook Energy Advisors, this week's EIA report shows the market's growing sensitivity "to even modest warmer shifts in the forecast."

Weather forecasts continue to point to above-normal temperatures across two-thirds of the country in early to mid-June, according to the National Weather Service.

A total of 32 liquefied natural gas-carrying vessels left US ports during the week, down from 34 vessels the previous week, with a total capacity of 121 Bcf, down by 7 Bcf from the prior week.

The daily rate of LNG exports in March 2026 was 18.6 Bcf/d, about 25.1% higher than the daily rate in March 2025, EIA data showed.

March 2026 exports were sent to 34 countries and totaled the highest rate for any month since tracking LNG exports began in 1997.

Meanwhile, the US gas rig count remained unchanged over the week at 125 in the week ending May 29, according to data from Baker Hughes (BKR) released Friday. That compares with 109 gas in operation a year earlier.

The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by 28 to 728 from 696 the previous week.

In international markets, European TTF gas prices averaged $16.35/MMBtu for the week ended May 27, $0.66/MMBtu lower than the previous week. The Japan-Korea Marker averaged $18.60/MMBtu, about $0.27/MMBtu higher than the prior week.

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