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US Natural Gas Update: Futures Edge Higher Amid Higher Power Demand, LNG Feedgas Recovery

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US natural gas futures edged higher on Tuesday, amid forecasts of higher power generation demand and recovery in LNG feedgas flows.

The front-month Henry Hub contract, along with the continuous contract, was up by 0.44% at $3.161 per million British thermal units.

LNG export feedgas flows remained weak at 16 Bcf/d over the past week, but are expected to touch 17.85 Bcf/d on Tuesday, according to estimates from the Bloomberg LNG Feedgas Model, which is above the 30-day moving average of 17.65 Bcf/d.

Similarly, weather forecasts remained bullish, with temperatures expected to be above normal through mid-June, before parts of the country start to flip to below normal from June 16 to June 22, according to the National Weather Service.

Power generation demand is "expected to hit new summer-to-date highs later this week," according to the Energy Buyer's Guide, amid forecasts of unseasonably hot temperatures across key population centers, which are expected to increase air conditioning demand and support prices.

Natural gas output remained broadly in line with the prior week, averaging between 106 billion cubic feet per day and 108 Bcf/d, according to NRG Energy.

Meanwhile, total US demand has weakened, averaging below 100 Bcf/d over the past seven days, even as temperatures have begun to trend higher.

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