Natural Gas Price over $3.00 on June 10

[dan_s]

JUL24 NYMEX contract trading at $3.06 when this was posted.

Trading Economics: US natural gas futures surged past $2.95/MMBtu, the highest since November and following a more than 12.8% increase in the previous week, driven by expectations of increased cooling demand due to warm weather forecasts for June. Forecasts indicating above-normal temperatures in various regions, particularly the Midwest and East, fueled market optimism, with expectations for this heat pattern to persist in the coming weeks. Also, US gas production is still down around 9% in 2024, as energy firms like EQT and Chesapeake Energy delayed well completions and reduced drilling activities earlier in the year. On the other hand, the latest EIA report showed a larger-than-expected storage build last week, bringing gas stockpiles 26.5% higher than the seasonal average.

Watch my June 9 podcast for more reasons why U.S. natural gas prices could be moving much higher in 2025.