US Natgas Prices Extend Retreat

US natural gas futures dropped nearly 2% to around $3.17 per MMBtu, extending their retreat from a 16-week high, as ample inventories and weaker LNG export flows weighed on prices. Although lower output in recent weeks has helped reduce the storage surplus, inventories remain around 5% above the five-year seasonal average, indicating broadly comfortable supply conditions heading into the summer period. Adding to this, net flows to major LNG export terminals fell to 16.4 bcfd so far in June from 17.1 bcfd in May as seasonal maintenance at several facilities continues to constrain exports. Still, prices found support from prospects of higher weather-driven demand, with forecasts pointing to mostly above-normal temperatures through June 20.