Natural gas futures moved higher this week, with the rally focused at the front of the curve as the June contract tested multi-month highs near $3.00 per MMBtu, while Winter 2026-27 remained near four-year lows below $3.90. The strength is being driven by the first meaningful heat wave of the season, which is lifting cooling demand and gas-fired power generation to seasonal highs. Meanwhile, production remains flat near 110 Bcf per day, LNG feedgas is temporarily lower due to maintenance but expected to rebound, and the latest 85 Bcf storage build lagged last year’s rapid injection pace. Overall, stronger power burn, recovering LNG exports, and limited production growth point to a more constructive summer setup that could eventually pull winter risk premium higher.
