US Natural Gas Prices Climb 2.6% in Mid-May Rally, here is why

Natural gas prices in the United States moved higher through the first half of May, supported by tightening short-term balances, shifting global trade dynamics and strengthening domestic power-sector demand. Despite ongoing volatility in LNG flows and storage injections, the natural gas market showed enough structural support to register a clear upward trend as warmer-than-normal temperatures boosted consumption and geopolitical tensions reshaped global supply expectations.

By the week ending ** May, Natural Gas Ex-Louisiana stood at USD *,*** per *,*** mmBtu, reflecting an approximate *.** increase from early-May levels. The firming in natural gas prices came even as the EIA reported a sizeable *** bcf storage injection, surpassing both market expectations and the five-year seasonal average. Natural gas production also strengthened, with weekly output rising nearly **, while inventories edged slightly higher. At the same time, LNG export activity softened, with natural gas feedgas flows...