US natural gas futures climbed to $3.87/MMBtu, the highest in nearly three months, as hotter-than-normal July weather and rebounding LNG exports drive up demand. After recent maintenance at key LNG plants like Cameron, Sabine Pass, and Corpus Christi, flows to export terminals are expected to increase in the coming weeks.
So far in June, LNG feedgas demand has averaged 14.1 bcfd, down from 15.0 bcfd in May and April’s record 16.0 bcfd. Also, weather forecasts show persistent heat across the Lower 48 states through early July, likely boosting gas use for air conditioning. On the supply side, output in the Lower 48 ticked up slightly to 105.3 bcfd in June, with daily production hitting an eight-week high of 106.4 bcfd on Monday.
