U.S. Natural Gas Rebounds Amid Rising Demand and Record Exports
The heat of summer is driving up the use of natural gas in the United States. During the June heat wave, natural gas generated roughly half of the energy in the PJM and ISO-New England networks. Forecasts indicate that the weather will be warmer than average until mid-July. This is causing front-month gas contracts to rise by more than 2% due to anticipated cooling demand.
Markets strike a balance between high supply and storage levels.
Even while demand is high, record production in the United States (averaging approximately 116 billion cubic feet per day in Q2 2025) has maintained stocks strong. Storage today holds approximately 2,953 Bcf, which falls well within the historical range. With fast injections in late spring and summer, supplies are well-positioned before the weather turns poor.
LNG exports provide the global market significant influence
Exports of liquefied natural gas (LNG) from the United States have increased by around 20% from last year to this year, owing to rising demand from Europe and Asia. Summer heat in Asia is expected to continue this trend, with shipments averaging a record 7.8 million metric tons from May to July, according to Reuters. This strong global demand is giving U.S. producers additional confidence, and Henry Hub futures benchmarks are expected to remain near to $3.40/MMBtu in Q3 2025.
Infrastructure and exports boost producer optimism
Improvements to export terminals and pipeline networks, particularly in the Permian Basin, are making it easier for producers to convert excess gas into LNG that can sell. If export capacity expands and demand remains stable, prices might rise even more, reaching $4/MMBtu by 2026.
Unstable Markets Present an Opportunity.
The natural gas market in the United States is currently experiencing a rare balance: strong domestic demand, ample reserves, and developing export infrastructure. When all of these factors are considered, they create excellent opportunities for energy purchasing and investment. Energy professionals can stay up to date by reading the EIA Weekly Natural Gas Report or NOAA forecasts that indicate how demand changes with the weather.
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