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US Natural Gas Update: Futures Slide Amid Decline in US LNG Feedgas Flows, Profit-Taking

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US natural gas futures were down on Tuesday amid steep declines in US LNG export feedgas flows and profit-taking by traders.

Both the front-month Henry Hub contract and the continuous contract fell 0.66% to $3.158 per million British thermal units.

US LNG feedgas flows were expected at 16.88 billion cubic feet per day, compared to above 18 Bcf figures last week, and the 30-day moving average of 17.81 Bcf, according to the Bloomberg LNG Feedgas Model.

After climbing to a three-month high of $3.29/MMBtu in late May, natural gas prices eased this week as traders locked in profits, according to Gary Cunningham of Tradition Energy.

Despite the pullback, Cunningham expects prices to remain in the $3.10/MMBtu to $3.20/MMBtu range through July and August, barring a stronger-than-expected heatwave in the second half of June that could boost cooling demand and tighten supplies.

Meanwhile, the demand for natural gas continued to soften, with total demand expected to drop by 1.2 Bcf/d on Tuesday, driven by a 1.5 Bcf drop in power burn.

On the bullish front, nearly the entire country is expected to experience above-normal temperatures between June 9 and June 15, according to the National Weather Service, a trend likely to boost air-conditioning demand and increase natural gas-fired power generation.

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