U.S. Natural Gas Prices Surge 6% Amid LNG Flows, Storage Draws

U.S. natural gas prices surged nearly 6% to a two-week high due to a larger-than-expected storage draw and increased flows to LNG export plants, alongside forecasts for colder weather and higher demand. The Energy Information Administration reported a draw of 100 billion cubic feet, exceeding analyst expectations, while the front-month gas futures reached $3.777 per million British thermal units. Meanwhile, gasoline prices are also on the rise across the U.S., with average prices increasing due to refinery issues in California and a seasonal switch to summer gas mixes, potentially climbing an additional 15 to 40 cents per gallon in the coming weeks. The national average for regular gas currently stands at $3.14 per gallon, slightly lower than the previous year but indicative of rising costs that impact daily commuters and overall economic sentiment. Analysts attribute the increases in both natural gas and gasoline prices to broader market dynamics, including supply chain disruptions and geopolitical tensions affecting oil supplies. As these costs rise, they are likely to influence public sentiment and perceptions of economic management by current political leadership.