NEW YORK: US natural gas futures edged up about 1% on Wednesday on forecasts for more demand this week than previously expected with an expected increase in flows to liquefied natural gas (LNG) export plants as Cameron LNG’s plant in Louisiana shows signs of exiting a maintenance reduction.
Gas futures for July delivery on the New York Mercantile Exchange fell 3.5 cents, or 1.0%, to $3.568 per million British thermal units. On Tuesday, the contract closed at its lowest since May 30 for a second day in a row.
Prices edged up even as energy firms continue to add record amounts of gas into storage and as the cost of spot gas remains well below futures prices.
So far this year, energy firms have pulled a monthly record high of 1.013 billion cubic feet (bcf) of gas out of storage during a brutally cold January and added a monthly record high of 497 bcf into storage in May when mild weather kept both heating and cooling demand low, according to federal energy data.
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