With the market assessing gains in production against another increase in LNG exports, natural gas futures were trading higher early Monday.
The August Nymex contract, expiring at the close, was up 1.0 cent at $2.016/MMBtu at around 8:36 a.m. ET. September was up 1.2 cents to $2.063.
The seven-day average for Lower 48 production rose to 102.4 Bcf/d through Sunday, from 101.6 Bcf/d a week earlier, according to Wood Mackenzie. Early readings for Monday showed output at 102.1 Bcf/d, the firm said.
“The market remains fundamentally well supplied,” according to EBW Analytics Group analyst Eli Rubin. However, a steep rebound in liquefied natural gas exports and “rebuilding heat may lead to another test higher” for futures. He noted that higher production and hurricane risks could potentially limit upside.
U.S. LNG export terminals nominated nearly 13.0 Bcf/d of feed gas Saturday to Monday, Wood Mackenzie data show. That higher pace included Freeport LNG in Texas reaching 2.2 Bcf/d over the weekend, its highest reading in nearly a year, Rubin said. Higher demand from Cameron LNG in Louisiana and Cheniere Energy Inc.’s Corpus Christi facility also contributed, he said.
The National Hurricane Center said a tropical disturbance was moving toward the Caribbean and could strengthen later this week. The storm could potentially strike Florida and “will require close monitoring in the days ahead,” NatGasWeather said.
Elsewhere on the weather front, weather models continued to point to stronger national demand over the next 15 days, NatGasWeather said. A high pressure system was expected to lift highs into the upper 80s to 100s across much of the country, it said.
The major exceptions to the heat could be the Northwest early this week with rain and highs in the 60s to 70s, and the Upper Great Lakes with highs in the 70s and 80s, the firm said.
