US natgas futures up 2% as cooling demand starts to rise

US natgas futures up 2% as cooling demand starts to rise

U.S. natural gas futures rose about 2% on Friday as some parts of the country rapidly move from heating demand to cooling demand, which could reduce the amount of gas utilities inject into already low stockpiles in coming weeks.

Traders also noted U.S. futures continued to gain support from much higher global gas prices that will keep demand for U.S. liquefied natural gas (LNG) exports strong. U.S. front-month gas futures for June delivery rose 14.2 cents, or 2.1%, to $7.030 per million British thermal units (mmBtu) by 10:13 a.m. EDT (1413 GMT).

That put the contract up about 7% for the week and 24% in April after falling about 10% last week and 28% in March. The premium for futures for July over June rose to 11 cents per mmBtu, putting the spread on track to close at a record high for a third day in a row. U.S. gas futures have gained about 88% so far this year as higher global prices kept demand for U.S. LNG exports near record highs since Russia invaded Ukraine on Feb. 24. Gas was trading around $33 per mmBtu in Europe and $25 in Asia.

The U.S. gas market, however, remains mostly shielded from those much