U.S. natural gas futures climb slightly by 1.0% after EIA reports storage increase as expected

U.S. natural gas futures climb slightly by 1.0% after EIA reports storage increase as expected

U.S. natural gas futures climbed by 1.0% on July 2, 2025, following the U.S. Energy Information Administration's (EIA) weekly natural gas report. The report indicated that working natural gas stocks increased by 0.1 Bcf/d to 15.2 Bcf/d, which was slightly higher than analysts' expectations [1].

The EIA report also showed that the Henry Hub spot price rose by 37 cents from $3.39/MMBtu last Wednesday to $3.76/MMBtu this Wednesday. This increase was driven by colder temperatures in the Northeast and higher consumption in the residential and commercial sectors. Natural gas consumption in the Northeast increased by 43% (10.2 Bcf/d) this report week, led by a 71% (8.1 Bcf/d) increase in consumption in the residential and commercial sector [1].

The report highlighted that natural gas plant liquids (NGPL) prices also increased. The natural gas plant liquids composite price at Mont Belvieu, Texas, rose by 31 cents/MMBtu, averaging $8.13/MMBtu for the week ending January 8. Ethane prices rose 13% week over week, while weekly average natural gas prices at the Houston Ship Channel increased 10%, widening the ethane premium to natural gas by 22% [1].

The EIA report also indicated that LNG exports hit a two-month high, providing strong support for domestic demand. The report showed that 27 LNG vessels with a combined LNG-carrying capacity of 102 Bcf departed U.S. ports between January 2 and January 8. This increase in LNG exports is expected to tighten supply signals amid summer demand [2].

The EIA report's bullish storage miss sparked a 3.83% rally in natural gas futures, with prices eyeing $3.574 as traders position for short-covering gains in hotter weather conditions. The report's slight increase in working natural gas stocks suggests that supply remains tight, and traders are positioning for higher prices in the coming months [2].

The overall sentiment in the natural gas market remains positive, with prices expected to continue to rise as demand outstrips supply. The EIA report's slight increase in storage and the continued increase in LNG exports provide strong support for this bullish outlook.

References:
[1] https://www.eia.gov/naturalgas/weekly/
[2] https://www.fxempire.com/forecasts/article/natural-gas-news-weather-and-inventory-report-fuel-futures-rally-today-1532872