US natural gas prices hit 16-week high as heat and demand rise

NEW YORK: US natural gas futures climbed about 3.0 percent to a 16-week high on Thursday on forecasts for warmer weather and higher demand than previously expected next week and a continued drop in output in recent days.

Front-month gas futures for July delivery on the New York Mercantile Exchange rose 9.7 cents, or 3.0percent, to USD3.311 per million British thermal units (mmBtu), putting the contract on track for its highest close since February 6.

That price increase came ahead of a federal report expected to show energy firms added a near-normal 101 billion cubic feet (bcf) of gas to storage during the week ended May 29.

That compares with an increase of 119 bcf during the same week last year and a five-year (2021-2025) average increase of 101 bcf for the period.

Financial group LSEG said average gas output in the US Lower 48 states dropped to 108.5 billion cubic feet per day (bcfd) so far in June, down from 109.7 bcfd in May and a monthly record high of 110.6 bcfd in December 2025.

On a daily basis, output fell by 3.1 bcfd over the past six days to a preliminary four-month low of 107.4 bcfd on Thursday due mostly to declines in Texas and Arkansas. Analysts noted preliminary data is often revised later in the day.

Meteorologists forecast the weather will remain mostly warmer than normal through June 19, which should boost the amount of gas power generators burn to keep air conditioners humming. About 40percent of US power generation comes from gas-fired plants.