Natural gas prices traded in a narrow range near $3.28 as competing forces balanced the market. Above-average temperatures across the southern US and parts of the Midwest have boosted cooling demand, with degree-day forecasts running 12% above the 10-year average for the last week of June.
The EIA reported a net injection of 78 Bcf into storage for the week ending June 19, below the five-year average of 90 Bcf for that week. Total working gas in storage now stands at 3,064 Bcf, a surplus of 6.8% above the five-year average and 4.2% above the year-ago level.
Production remains resilient. Dry gas production averaged 103.2 Bcf/d in June, flat versus the prior month and up 2.1% year-over-year. The Permian Basin and Haynesville shale continue to deliver steady output as producers maintain drilling activity despite relatively low spot prices.
LNG export demand is providing price support. Feedgas flows to US LNG terminals averaged 13.8 Bcf/d in June, near capacity. Freeport LNG is operating at 95% utilization following its April maintenance turnaround. LNG exports are expected to set a new record in July as Asian and European buyers restock ahead of winter.
Natural gas prices are range-bound in the $3.10-3.50 zone as cooling demand offsets ample storage. Buyers with winter requirements should begin covering forward positions now, as the Henry Hub winter strip (Nov-Mar) is pricing at a $0.40-0.60 premium to the prompt month. Do not wait for a pullback to $3.00 — that scenario requires a cooler-than-expected July.