U.S. Natural Gas Slips as Spot LNG in Asia Reaches 4-Month High

  • Singapore spot LNG price index rises 4 percent to $4.808
  • U.S. gas inventory increases slower than the 5-year average

Natural gas futures in the U.S. slipped as spot LNG prices in Singapore reached the highest level in almost four months.

Gas for July delivery on the New York Mercantile fell 0.6 percent to $2.57 per million British thermal units at 11:57 a.m. London time. Futures rose as high as $2.635 on Monday, the highest intraday level for a front-month contract since Sept. 29.

Liquefied natural gas for spot delivery near Singapore rose 4 percent in the week to June 13 to $4.808 per million Btu, the highest level since Feb. 15, according to an assessment by Singapore Exchange Ltd.

U.S. gas storage levels have grown about 20 percent since the end of March, compared with a 43 percent average increase from 2011-2015. Warm temperatures will push across the lower 48 states in the U.S. over the next two weeks, a change from forecasts late last week, according to MDA Weather Services.

“Based on the recent four weeks of storage injection data, it appears U.S. natural gas balances have arguably overtightened in early summer,” Morgan Stanley analysts including Adam Longson said in a research note e-mailed Monday.

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