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

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US natural gas futures held onto gains in after-hours trading on Friday as firm domestic demand and strong LNG exports continued to support sentiment despite Thursday's bearish storage data.

The front-month Henry Hub contract and the continuous contract both rose 1.17% to $2.67 per million British thermal units.

NRG Energy said forecast heat across much of the central and southern US is expected to keep cooling demand elevated through mid-August.

Analysts said that geopolitical tensions involving the US and Iran, along with continued concerns over shipping through the Strait of Hormuz, remain supportive for global oil and LNG markets.

US dry gas production stood at 111.4 billion cubic feet per day, while Canadian imports fell to a two-week low of 4.6 Bcf/d, reducing total supply to 116 Bcf/d, according to Gelber & Associates.

LNG feedgas flows climbed to a two-week high of 18.8 Bcf/d and power burn held at 49 Bcf/d, leaving market balances modestly supportive despite elevated production.

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

According to US Energy Information Administration data released Thursday, working gas in storage increased by 33 billion cubic feet for the week ended July 31, lifting total inventories to 3,117 Bcf, about 6.7% above the five-year average.

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