**Natural Gas Prices Surge Amid Rising Demand for Cooling**
On Tuesday, July Nymex natural gas prices closed up by 4.34%, reaching +0.121, driven by updated forecasts predicting hotter temperatures across the eastern and southern United States from June 28 to July 2. Maxar Technologies indicated that these conditions would significantly increase demand for natural gas, particularly as electricity providers ramp up supply for air-conditioning usage.
Additionally, BNEF reported that lower-48 state dry gas production was 98.5 billion cubic feet per day (bcf/day), down 0.4% year-over-year, while gas demand rose to 73.9 bcf/day, marking a 12.6% increase year-over-year. Meanwhile, LNG net flows to U.S. export terminals decreased to 12.5 bcf/day. Despite the bullish outlook, recent weekly EIA data revealed a rise in natural gas inventories by 74 bcf, slightly above projections but below the five-year average increase of 89 bcf, indicating relatively ample supplies.
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