CORRECTED-US natgas prices climb 2% on soaring oil futures after Israel strikes Iran

ReutersJun 13, 2025 7:53 PM

US August gas futures premium over July hits record high
US gas storage injections could top 100 bcf for record 8th straight week
Sabine LNG plant seen back at full service in late June

By Scott DiSavino

June 13 (Reuters) - U.S. natural gas futures climbed about 2% on Friday as gas followed oil prices higher after Israel launched strikes against Iran, raising worries that the Gulf nation could disrupt Middle Eastern oil and gas supplies.

U.S. crude futures CLc1 jumped more than 13% overnight, reaching their highest levels since January. O/R

Gas futures for July delivery NGc1 on the New York Mercantile Exchange were up 5.9 cents, or 1.7%, to $3.551 per million British thermal units (mmBtu) at 10:18 a.m. EDT (1418 GMT). On Thursday, the contract closed at its lowest level since May 30 for a fourth day in a row.

For the week, the front-month was down about 4% after gaining about 13% over the prior two weeks.

The premium of gas futures for August over July NGN25-Q25 rose to a record high of 11 cents per mmBtu. With August futures trading higher than July futures so far this year, energy traders said the higher premium was likely due to expectations of lower supply, higher demand and/or a lower surplus of gas in storage in August than July.

So far this year, energy firms have pulled a monthly record high of 1.013 trillion cubic feet of gas out of storage during a brutally cold January and added a monthly record high of 497 billion cubic feet into storage in May when mild weather kept both heating and cooling demand low, according to federal energy data. The prior all-time monthly injection high was 494 bcf in May 2015.

During the week ended June 6, energy firms added 100 bcf or more of gas into storage for seven weeks in a row, tying the seven-week triple-digit injection record set in June 2014, according to federal energy data going back to 2010.

SUPPLY AND DEMAND

Financial firm LSEG said average gas output in the Lower 48 U.S. states has eased to 105.1 billion cubic feet per day so far in June, down from 105.2 bcfd in May and a monthly record high of 106.3 bcfd in March due primarily to normal spring maintenance.

Meteorologists forecast weather across the Lower 48 states will remain mostly warmer than normal through June 28.

With hotter summer weather coming, LSEG forecast average gas demand in the Lower 48, including exports, would rise from 98.5 bcfd this week to 98.8 bcfd next week and 102.1 bcfd in two weeks. The forecast for this week was higher than LSEG's outlook on Thursday, while its forecast for next week was lower.

The average amount of gas flowing to the eight big U.S. LNG export plants has fallen to 14.0 bcfd so far in June, down from 15.0 bcfd in May and a monthly record high of 16.0 bcfd in April.

Traders said LNG feedgas reductions since April were primarily due to spring maintenance, including work at Cameron LNG's 2.0-bcfd plant in Louisiana and Cheniere Energy's LNG.N 4.5-bcfd Sabine Pass facility in Louisiana and 3.9-bcfd Corpus Christi plant in Texas, and short, unplanned unit outages at Freeport LNG's 2.1-bcfd plant in Texas on May 6, May 23, May 28 and June 3.

Energy traders said they expect maintenance to continue through late-June at Sabine, which has been pulling in about 3.0 bcfd of gas since the end of May. That figure compares with an average of 4.5 bcfd during the month of May.

	Week ended Jun 13 Forecast	Week ended Jun 6 Actual	Year ago Jun 13	Five-year average Jun 13
U.S. weekly natgas storage change (bcf):	+102	+109	+72	+72
U.S. total natgas in storage (bcf):	2,809	2,707	3,035	2,640
U.S. total storage versus 5-year average	+6.4%	+5.4%


Global Gas Benchmark Futures ($ per mmBtu)	Current Day	Prior Day	This Month Last Year	Prior Year Average 2024	Five-Year Average (2019-2023)
Henry Hub NGc1	3.53	3.49	2.81	2.41	3.52
Title Transfer Facility (TTF) TRNLTTFMc1	12.92	12.35	10.87	10.95	15.47
Japan Korea Marker (JKM) JKMc1	12.46	12.45	12.30	11.89	15.23


LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days
Two-Week Total Forecast	Current Day	Prior Day	Prior Year	10-Year Norm	30-Year Norm
U.S. GFS HDDs	11	10	11	12	12
U.S. GFS CDDs	191	189	189	160	157
U.S. GFS TDDs	202	199	200	172	169

LSEG U.S. Weekly GFS Supply and Demand Forecasts
	Prior Week	Current Week	Next Week	This Week Last Year	Five-Year (2020-2024)Average For Month
U.S. Supply (bcfd)
U.S. Lower 48 Dry Production	104.9	105.4	105.1	100.9	96.8
U.S. Imports from Canada	7.5	8.0	7.3	N/A	7.3
U.S. LNG Imports	0.0	0.0	0.0	0.0	0.0
Total U.S. Supply	112.4	113.4	112.4	N/A	104.1

U.S. Demand (bcfd)
U.S. Exports to Canada	1.7	1.6	1.5	N/A	2.3
U.S. Exports to Mexico	7.4	7.1	7.4	N/A	6.3
U.S. LNG Exports	13.5	13.7	14.1	12.9	9.1
U.S. Commercial	4.7	4.5	4.4	4.5	4.8
U.S. Residential	4.1	3.8	3.8	3.9	4.3
U.S. Power Plant	34.5	38.2	38.0	38.1	38.0
U.S. Industrial	22.3	22.1	22.2	21.6	21.5
U.S. Plant Fuel	5.2	5.2	5.2	5.2	5.2
U.S. Pipe Distribution	1.9	2.0	2.0	1.9	2.8
U.S. Vehicle Fuel	0.1	0.1	0.1	0.1	0.2
Total U.S. Consumption	72.9	76.0	75.8	75.3	76.8
Total U.S. Demand	95.5	98.5	98.8	N/A	88.2

N/A is Not Available

U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam (Fiscal year ending Sep 30)	2025 Current Day % of Normal Forecast	2025 Prior Day % of Normal Forecast	2024 % of Normal Actual	2023 % of Normal Actual	2022 % of Normal Actual
Apr-Sep	79	79	74	83	107
Jan-Jul	79	79	76	77	102
Oct-Sep	81	81	77	76	103


U.S. weekly power generation percent by fuel - EIA
	Week ended Jun 13	Week ended Jun 6	2024	2023	2022
Wind	9	9	11	10	11
Solar	8	8	5	4	3
Hydro	6	7	6	6	6
Other	1	1	1	2	2
Petroleum	0	0	0	0	0
Natural Gas	41	40	42	41	38
Coal	17	16	16	17	21
Nuclear	18	19	19	19	19

SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)
Hub	Current Day	Prior Day
Henry Hub NG-W-HH-SNL	2.90	2.73
Transco Z6 New York NG-CG-NY-SNL	1.82	2.04
PG&E Citygate NG-CG-PGE-SNL	3.08	3.00
Eastern Gas (old Dominion South) NG-PCN-APP-SNL	1.82	1.92
Chicago Citygate NG-CG-CH-SNL	2.65	2.59
Algonquin Citygate NG-CG-BS-SNL	1.95	2.23
SoCal Citygate NG-SCL-CGT-SNL	3.63	3.49
Waha Hub NG-WAH-WTX-SNL	2.25	2.25
AECO NG-ASH-ALB-SNL	0.92	0.96

ICE U.S. Power Next-Day Prices ($ per megawatt-hour)
Hub	Current Day	Prior Day
New England E-NEPLMHP-IDX	31.50	35.67
PJM West E-PJWHDAP-IDX	45.45	58.59
Mid C W-MIDCP-IDX	28.60	30.52
Palo Verde W-PVP-IDX	34.17	37.48
SP-15 W-SP15-IDX	15.42	20.39

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.