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US Natural Gas Update: Futures End Higher as LNG Exports Support Prices

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US natural gas futures ended higher Monday, with stronger winter pricing and a firming forward curve supporting the market despite elevated production and inventories.

The front-month Henry Hub contract and the continuous contract both rose 4.40% to $2.78 per million British thermal units.

Stronger LNG exports from the US Gulf Coast and hedge fund short covering helped lift natural gas prices, as higher flows to export terminals reduced gas available to the domestic market, according to a Bloomberg report.

NYMEX natural gas prices ended last week modestly higher, with gains concentrated in the upcoming winter months, NRG Energy said.

The 2027 calendar year contract increased just over three cents to $3.316/MMBtu, while the 2029 strip remained the highest calendar strip at $3.696/MMBtu, NRG Energy said.

US natural gas prices had climbed toward $2.80 earlier last week before retreating toward $2.60 by Aug. 7 as high production and inventory levels weighed on the market, JOGMEC Journal said.

US gas inventories reached 3,117 Bcf as of July 31 following a 33 Bcf weekly injection, with stocks 0.4% below year-earlier levels but 6.7% above the five-year average, according to Energy Information Administration data cited by JOGMEC Journal.

Natural gas production also continued to rise, reaching 109.1 Bcf/d by the end of last week, up 1.3 Bcf/d from Thursday, while overall demand remained largely unchanged, NRG Energy said.

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Commodities

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