June Nymex natural gas closed at $2.86 per MMBtu on Monday, rising by $0.087 (+3.13%), the highest level in four weeks. The increase was fueled by forecasts of below-normal temperatures across much of the U.S. Midwest through May 13, which may increase heating demand. U.S. nat-gas production reached 110.1 billion cubic feet per day (bcf/day), up 3.2% year-over-year, and LNG net flows to U.S. export terminals dropped to 18.0 bcf/day, down 6.8% week-over-week.
Amid ongoing tensions in the Middle East, specifically the closure of the Strait of Hormuz, U.S. nat-gas exports could rise due to curtailed supplies from the region. The EIA reported nat-gas inventories on April 24 at 7.7% above the five-year seasonal average, even as the number of active drilling rigs edged up to 130, below the recent 2.5-year high of 134.
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