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US Natural Gas Update: Futures Edge Lower Despite Warmer Temperatures, Strong Feedgas Flows

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US natural gas futures were down on Tuesday, despite warmer temperatures boosting domestic demand and a strong recovery in LNG feedgas flows.

Both the front-month Henry Hub contract and the continuous contract were down by 1.69% to $3.198 per million British thermal units.

LNG export feedgas flows are estimated to hit 19.14 billion cubic feet per day on Tuesday, compared to the 30-day moving average of 18.13 Bcf, according to the Bloomberg LNG Feedgas Model, as major LNG export facilities emerge from spring maintenance.

Weather forecasts remained bullish, with over two-thirds of the country expected to see above-normal temperatures from June 30 to July 06, according to the National Weather Service, leading to increased air conditioning and domestic power burn demand.

At the same time, total natural gas production has experienced a modest decline, in the 107 Bcf/d range, according to NRG Energy, adding to the bullish momentum.

Yet, prices remain under pressure, as tensions begin to de-escalate in the Middle East, with US President Donald Trump lifting the naval blockade against Iran, and flows through the Strait of Hormuz beginning to recover.

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