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US Natural Gas Update: Futures Rise Amid Persistent Warm Weather, LNG Export Rebound

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US natural gas futures surged on Wednesday, hitting their highest levels in over eight weeks as persistently warm temperatures and a rebound in LNG export flows kept prices elevated.

Both the front-month Henry Hub futures contract and the continuous contract rose 1.24% to $2.940 per million British thermal units.

This comes amid forecasts of above-normal temperatures expected to blanket almost the entire country from September 09 through September 15, according to the National Weather Service, keeping cooling gas demand elevated in the near term.

LNG export feedgas flows, which were subdued in recent weeks due to scheduled maintenance at major facilities, were expected at 18.81 billion cubic feet on Wednesday, significantly above the 30-day moving average of 18.20 Bcf/d, according to the Bloomberg LNG Feedgas Model.

This is expected to edge higher, with Cheniere's Stage 3 LNG expansion adding incremental demand, according to NRG Energy.

According to Pinebrook Energy Advisors, the near-term heat remains the main source of support for the markets, helping keep "power-generation demand elevated and limit storage injections in the near term," while the robust output and healthy storage levels capping any major upside gains.

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