Natural gas prices in the United States strengthened during the first half of May, supported by tightening short-term balances and firmer power-sector demand. Warmer-than-normal temperatures boosted consumption, while global supply risks stemming from Middle East disruptions added a risk premium to the market. Domestic fundamentals were mixed, with strong production and rising storage levels offset by reduced LNG feedgas flows due to maintenance at major export terminals. Even so, improving trade sentiment and expectations of recovering export activity helped maintain upward momentum. With early-summer heat building, natural gas is positioned to remain firm in the near-term outlook.
