Natural gas prices surged on Monday, with June Nymex natural gas (NGM26) closing up 5.55% (+0.153) to reach a six-week high. This increase was driven by forecasts of well-above-normal temperatures across the eastern US, which are expected to raise demand from electricity providers for air conditioning.
Key data shows that US natural gas production in the lower 48 states was at 111.1 billion cubic feet per day (bcf/day), a 4.5% increase year-on-year, while natural gas demand reached 69.1 bcf/day, up 18.3% year-on-year. Additionally, projected increases in US natural gas production could create downward pressure on prices as the EIA raised its 2026 production forecast to 109.59 bcf/day.
Global events are also impacting the market. The closure of the Strait of Hormuz has curtailed natural gas supplies from the Middle East, which may boost US exports. Furthermore, damage to Qatar’s Ras Laffan plant, which accounts for 20% of global LNG supply, is anticipated to take three to five years to repair, further tightening global LNG supplies.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
