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US Natural Gas Update: Futures Ease as Ample Supply Offsets Hotter Weather Forecasts

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US natural gas futures prices softened in after-hours trading Monday as ample supply and mixed weather forecasts outweighed hotter conditions expected in parts of the Midwest and Northeast.

The front-month Henry Hub contract fell 0.69% to $2.754 per million British thermal units, while the continuous contract declined 0.14% to $2.807/MMBtu.

Natural gas prices weakened during Monday's session despite warmer forecasts for the Northeast and Midwest, as cooler revisions elsewhere across the Lower 48 limited the impact of the bullish weather outlook.

Aegis Hedging said weekend weather-model changes were mixed, with forecasts turning warmer across the Northeast and Midwest but cooler across much of the rest of the Lower 48. The most significant shift was in the Midwest, where temperatures increased by more than 20 degrees Fahrenheit across the forecast period.

Overall, near-term cooling demand is expected to ease, with cooling degree days around 12 this week, according to Criterion. Demand is forecast to strengthen next week, when CDDs are expected to climb above 13, Aegis said.

Supply provided additional pressure on prices. Lower 48 production fell to 111.4 Bcf/d on Monday, according to Gelber & Associates, lending some underlying support to the market, though the decline could prove temporary.

LNG feedgas demand stood at 17.8 Bcf/d, with flows constrained by the slow ramp-up at Golden Pass and ongoing maintenance at Freeport LNG and Cheniere Energy's Corpus Christi facility.

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