NEW YORK — U.S. natural gas futures for July delivery settled at $3.343 per million British thermal units on June 25, rising 3.8 percent to their highest close since Feb. 6 — a 19-week high.

The August contract, set to become the front-month, gained 1 percent to $3.30 per MMBtu. The rally forced an unwinding of short positions; money managers had held their most bearish stance on gas since 2020.

Rising demand for U.S. liquefied natural gas exports acted as a primary catalyst. Average gas flows to the nine major U.S. LNG export plants increased to 17.3 billion cubic feet per day in June, up from 17.1 Bcf/d in May, partly driven by record flows at QatarEnergy and ExxonMobil's Golden Pass plant in Texas. The monthly record for LNG export flows stands at 18.8 Bcf/d, set in April.

Meteorologists project warmer than normal temperatures through July 10 across the United States, a forecast expected to lift electricity demand for air conditioning. Gas-fired plants generate approximately 40 percent of U.S. power. LSEG data show average gas demand in the Lower 48 states, including exports, will climb from 102.9 Bcf/d this week to 105.3 Bcf/d next week — an upward revision from LSEG's June 24 outlook.

The U.S. Energy Information Administration reported that energy firms added 76 Bcf of gas into storage during the week ended June 19, near the 74 Bcf analysts had forecast. Storage additions totaled 96 Bcf during the same week last year; the five-year average for the period is 75 Bcf. Overall stockpiles remain approximately 5.7 percent above normal levels for this time of year.

Average gas output in the Lower 48 states held at 109.7 Bcf/d so far in June, consistent with May's output, and below the monthly record of 110.6 Bcf/d reached in December 2025.

Two LNG vessels are sailing directly from the United States to China. The LNG Sakura, which departed Berkshire Hathaway Energy's Cove Point LNG export plant in Maryland in mid-May, is expected to reach China around June 26. A second vessel is projected to arrive in China by mid-July. No LNG tanker had sailed directly from a U.S. export plant to China during President Trump's second term, which began in January 2025, primarily due to trade disputes between the two countries.