-- US natural gas futures were up nearly 2% on Wednesday, amid a drop in output in recent weeks, alongside near-record flows to LNG export facilities.
The front-month Henry Hub contract, along with the continuous contract, rose by 1.62% to $2.88 per million British thermal units.
This comes as the average US natural gas output dipped by nearly 4 billion cubic feet per day in recent weeks, to 106.8 Bcf per day, according to NRG Energy.
Meanwhile, LNG feedgas flows remained robust at 19 Bcf per day, near-record highs, as more LNG capacity is set to come online in the coming months.
Weather forecasts have turned bullish as well, with large parts of the Central and Northeastern US expected to see below-normal temperatures from April 29 to May 05, according to the National Weather Service.
On Wednesday, Iran's Islamic Revolution Guards Corps seized two vessels in the Strait of Hormuz for violating regulations. This marked a major escalation in the conflict, just hours after US President Donald Trump said that he was extending the ceasefire with Tehran, according to a report by Iran's Tasnim News Agency.
However, on a bearish note, forecasts expect a 95 Bcf injection into storage in the Energy Information Administration's Weekly Report on Thursday, which is higher than the prior-year figure and the five-year average.