Natural Gas News: Storage Report Miss Lifts Sentiment—Forecast Eyes Summer Weather

Natural Gas Finds Support as Heat Wave Drives Summer Demand

Natural gas prices traded on mixed footing during the week of July 6–12, 2025, as strong cooling demand met with solid supply and storage conditions. Traders responded to a blend of bullish storage data and ongoing production discipline, while the market’s focus remained firmly on weather-driven power sector demand. Despite a mild dip in benchmark prices, fundamentals kept a supportive tone in place.

Did the Storage Miss Give Bulls an Opening?

The latest EIA storage report landed below expectations, showing a 53 Bcf injection versus the 60 Bcf consensus. While this matched the five-year average, it was notably 8 Bcf lower than the same week last year.

Total storage now sits at 3,006 Bcf—6% above the five-year average, yet 6% below last year’s level. The smaller build signaled stronger demand, particularly in the power sector, and gave the market a short-term bullish nudge.

Traders are keeping a close eye on the refill pace. With injections running 24% above the five-year norm so far, storage could be well-stocked by late October, potentially capping upside unless summer heat persists longer than expected.

Can the Heat Dome Keep Demand Elevated?

Extreme temperatures across the eastern U.S. continued to boost cooling load. Over 125 million Americans were under heat advisories during the week, pushing power burn to unseasonably high levels. Natural gas used for electricity generation rose by 0.4 Bcf/d week-over-week, up 1.0%, according to S&P Global.

This surge in demand came just as gas-fired generation had already been running hot. The sector remains the biggest demand driver this summer, and with the heat wave showing few signs of easing, the trend is likely to persist in the near term.

Is Supply Finally Tightening?

Supply took a modest step back last week, with total gas output falling by 0.6% to 106.2 Bcf/d. Net imports from Canada also edged lower. Rig count data showed producers are holding steady, with minimal adjustments in key basins. The drop in production, while small, hints at ongoing capital discipline and could become more relevant if demand continues to surprise to the upside.

LNG Exports Bounce Back After Maintenance

LNG feedgas demand recovered last week, averaging 16.0 Bcf/d, up slightly from the week before. Gulf Coast terminals led the gains, particularly in South Louisiana, while South Texas deliveries dipped slightly. Twenty-seven LNG cargoes left U.S. ports during the week, as facilities returned to full strength following June maintenance shutdowns.

Conclusion: Weather Keeps Floor Under Market

While the Henry Hub spot price dipped slightly to $3.08/MMBtu, and front-month futures softened, fundamentals remain relatively balanced. Continued heat-driven demand, a bullish storage miss, and LNG support should keep a floor under prices in the near term—even if upside remains capped by healthy storage levels and ample supply.

More Information in our Economic Calendar.