US natural gas futures increased as producers reduced output over the US holiday weekend and more domestic gas supplies flowed to liquefied natural gas export terminals on the Gulf Coast. Some of those facilities had previously lowered capacity to perform seasonal maintenance, pushing more gas into the domestic market.
Price gains are likely limited by a cool shift in weather forecasts. Below-average temperatures are expected in Eastern US population centers at the beginning of the so-called summer cooling season, when consumers crank up air-conditioning and in turn drive up gas-fired electricity demand. Lower cooling demand could allow for more gas to be put into storage.
