**Natural Gas Prices Decline Amid Weather Forecasts and Increased Exports**
On Tuesday, June Nymex natural gas prices closed at $2.87, a drop of 0.45% to a one-week low, as forecasts of below-normal temperatures across the eastern U.S. from May 31 to June 4 are expected to reduce demand for air-conditioning power. The Commodity Weather Group has reported these cooling trends.
Despite falling prices, natural gas futures showed signs of recovery due to an 8.8% week-over-week increase in gas flows to LNG export terminals, totaling 18.4 billion cubic feet per day (bcf/day). U.S. dry gas production also remains high at 110.6 bcf/day, marking a 3.1% year-over-year rise. Natural gas inventories were reported at 101 bcf for the week ended May 15, exceeding expectations and the five-year average. Additionally, ongoing geopolitical tensions affecting global LNG supplies, particularly the closure of the Strait of Hormuz and damage to Qatar’s Ras Laffan facility, may bolster U.S. exports in the medium term.
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