Lack of Inventory Data and Warming Weather Pushes Natural Gas Prices over 2% Higher

The price of natural gas is about 2% higher Thursday than it was the previous day as demand is anticipated to rise.

Written by: Timothy St. John • Thursday, June 25, 2026 • 2 min read

• Last updated: Thursday, June 25, 2026

Natural gas prices are higher this week as temperatures are expected to climb.

Quick overview

Natural gas prices in the U.S. rose to $3.29 per MMBtu as warm weather is expected across the lower 48 states.
Higher temperatures are anticipated to increase demand for natural gas due to increased air conditioning usage.
Analysts predict a lower than normal storage build in the upcoming inventory data, which could support higher LNG prices.
Current inventory levels are above the 5-year average, but the forecasted build is expected to be below normal.

Forecasts are calling for more warm weather ahead across the lower 48 U.S. states, and natural gas prices have responded by rising around 2% Thursday as traders await new inventory data.

Higher temperatures are expected to increase US LNG rates.

Natural gas rates in the United States rose to $3.29 per MMBtu on Thursday while investors were waiting on the latest inventory data to release. Weather forecasts say that much of the upper Midwest and the middle Atlantic parts of the country should have higher than normal temperatures all the way through July 3rd.

As weather heats up, air conditioning units working from power generators will need more natural gas to deal with the rising temperatures. The expected demand increase is driving prices higher for now, but new inventory data could change that.

Higher LNG Prices Find Support in Inventory Expectations

The price of natural gas may remain higher even after the latest EIA inventory reading. Analysts anticipate that the next reading will show a lower than normal storage build, and the domestic LNG rates could climb higher as a result.

The current natural gas price is not quite as high as it was a year ago but is higher than what the market experienced through much of February through May of this year. The price may drop after the weather cools off a bit and demand falls, especially with still-elevated inventory levels that sit around 6% higher than the 5-year average.

The current inventory build forecast is around 67 bcf, and that would be well below the 5-year average for the same period, which is 75 bcf. Levels have been above average for all of 2026 so far and much of 2025 as well, which means that the 5-year average may start to skew higher in coming years.

Flows to export facilities rose slightly in June, from 17.1 bcfd to 17.3 bcfd and the increase is attributed to gas exports sent to China to help with shortages there as well as the closing off of seasonal maintenance for these facilities. With these factors taken into consideration, the expectation for natural gas pricing over the next few weeks is that the rates will rise initially and then drop as inventory and demand are calculated.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.