FINWIRES · TerminalLIVE
FINWIRES

US Natural Gas Update: Futures Rise as Strong Demand Offsets Bearish Storage Data

By

US natural gas futures rose on Friday as strong LNG demand and robust power consumption helped offset pressure from a larger-than-expected storage injection.

The front-month Henry Hub contract and the continuous contract both rose 1.10% to $2.67 per million British thermal units.

According to the US Energy Information Administration, working gas in storage increased by 33 billion cubic feet for the week ended July 31, above market expectations for a 30 Bcf injection, according to data compiled by Investing.com.

Total inventories rose to 3,117 Bcf. The build exceeded the prior week's 27 Bcf injection, last year's 13 Bcf increase and the five-year average build of 23 Bcf, leaving inventories about 6.7% above the five-year average.

Gelber & Associates said lower imports and strong export demand kept fundamental balances modestly supportive despite elevated production.

Temperatures are expected to remain above normal through early next week, with power burn forecast to peak near 50.2 Bcf per day on Tuesday, Gelber & Associates said.

However, cooler weather is forecast during the 11-15 day period, which could ease weather-driven demand later in August. The firm said ample inventories and sustained production continue to limit the bullish impact of the current heat.

The EIA's 33 Bcf storage injection was modestly above expectations and weighed on the September contract, although demand fundamentals remained supportive, NRG Energy said, noting that US power burn is above 51 Bc/d and running 12% above the same period last year.

"Geopolitical tensions remain a key upside risk for oil and LNG markets as fighting between the US and Iran continues and shipping concerns around the Strait of Hormuz persist," NRG said.

Related Articles

Commodities

US Natural Gas Update: Futures Fall on Larger-than-Expected Inventory Build

US natural gas futures fell on Thursday, with front-month prices dropping to their lowest level in more than three months after government data showed a larger-than-expected increase in storage, reinforcing the perception of an amply supplied market.The front-month Henry Hub contract and the continuous contract both fell 2.05% to settle at $2.633 per million British thermal units.The US Energy Information Administration reported that working gas in storage increased by 33 billion cubic feet in the week ended July 31. The build exceeded market expectations for a 30 Bcf injection and was well above the five-year average increase of 23 Bcf for the period, underscoring a comfortable supply backdrop.But losses were tempered by forecasts calling for warmer near-term weather across key US demand regions, which could lift natural gas consumption from power generators as air-conditioning use increases. Commodity Weather Group said forecast models shifted warmer on Thursday, with above-average temperatures expected across the Northeast and western US through Aug. 10.Total lower-48 gas consumption was estimated at 83.2 Bcf/d on Thursday, up 7.5% from a year earlier. Celsius Energy said powerburn on Aug. 4 hit 45.8 Bcf, a 2.2 Bcf rise over the same day last year.The market is also looking ahead to additional supply growth next month. Energy Transfer's Hugh Brinson Pipeline is expected to reach its full 1.5 Bcf/d capacity by Sept. 1, increasing the flow of Permian Basin natural gas to the Henry Hub pricing point in Erath, Louisiana.Current production remains robust. Lower-48 dry gas output was estimated at 111.2 Bcf/d on Thursday, up 1.8% from a year earlier, Barchart, citing BNEF data, said. Separately, Trading Economics said Lower-48 production averaged a record 110.7 Bcf/d in July.Meanwhile, net feedgas flows to US LNG export terminals were estimated at 18.5 Bcf/d on Thursday, remaining below full capacity because of scheduled maintenance at liquefaction facilities on the US Gulf Coast. However, LNG feedgas volumes were up 3.3% from the previous week.

Commodities

Northern Oil and Gas Reports Record Q2 Natural Gas Production, Maintains 2026 Output Outlook

Northern Oil and Gas (NOG) reported Q2 earnings Thursday, showing total production of 145,659 barrels of oil equivalent per day, up from 134,094 boe/d a year earlier.Total net production increased to 13.256 million boe for the quarter ended June 30, up from 12.203 million boe a year earlier.Oil production totaled 6.213 million barrels for the quarter, down from 7.002 million barrels a year earlier, while average daily oil production declined to 68,275 barrels per day from 76,944 b/d.Natural gas production increased to a record 42.254 billion cubic feet in the quarter from 31.204 Bcf a year earlier, while average daily production climbed to 464.3 million cubic feet per day, up from 342.9 MMcf/d in the year-ago quarter.Oil volumes reflected about 7,000 boe/d of temporary well shut-ins and three deferred turn-in lines in certain Permian assets, NOG said.The company added 12.7 net wells to production during the quarter, compared with 13.5 net wells a year earlier, excluding major acquisitions.Appalachian production reached a record during the quarter as the West Virginia joint development program concluded and the Utica joint development contributed a full quarter of production.NOG completed its Duvernay Light Oil joint development on June 1 for total consideration of $262.1 million and closed 30 ground game transactions that added more than 2,300 net acres and 6.2 net wells for $44.7 million, including associated development costs.Northern Oil and Gas maintained its full-year 2026 production guidance at 143,000 boe/d to 148,000 boe/d and annual oil production guidance at 71,500 b/d to 73,500 b/d.The company also reaffirmed total budgeted capital expenditures of $850 million to $900 million and expects to turn 74 to 76 net wells in line this year.

$NOG
Commodities

US Reportedly Weighs Delay to New Solar Import Tariffs as Industry Braces for Higher Costs

The US is considering delaying the collection of planned tariffs on imported solar products made with polysilicon by up to four months, a move that could trigger a surge in imports before the duties take effect, multiple news outlets reported on Thursday.US officials are reportedly weighing a 90- to 120-day phase-in period for the tariffs, which US President Donald Trump could announce as early as Thursday. The proposal remains under discussion and could change.The new measures would impose minimum import prices and tariffs of at least 15% on polysilicon, as well as solar wafers, cells and panels made from the material. Polysilicon is a key ingredient in most solar panels.A temporary delay would give renewable energy developers an opportunity to import lower-cost equipment before the tariffs raise prices. However, US manufacturers argue that postponing the levies would allow a wave of cheap imports to enter the market, undermining the administration's efforts to rebuild domestic production.The proposed tariffs are part of a broader strategy to expand US production of polysilicon and other solar manufacturing components after China became the world's dominant supplier over the past decade. The administration is also expected to introduce incentives aimed at encouraging companies to build or expand factories in the US.The White House did not immediately respond to a request for comment from.