On May 1, US natural gas futures continued their upward trend, supported by a combination of declining domestic production and strong demand for liquefied natural gas exports.

Data indicates that natural gas production in the United States has been steadily decreasing, with average daily output falling by approximately 2 billion cubic feet over the past five days to 10.76 billion cubic feet, marking a 12-week low. Major producers, including EQT, have implemented voluntary production cuts in response to previously low prices. In the second quarter, EQT has strategically reduced output by about 1 to 1.5 billion cubic feet, leveraging its low-cost advantages to maintain stable operations. The company's first-quarter financial report showed an average sales price of $5.08 per million British thermal units, ranking among the highest in the industry.

Simultaneously, demand for LNG exports has risen sharply. In April, US demand for feed gas used in LNG production increased to an average of 18.8 billion cubic feet per day, surpassing the 18.6 billion cubic feet recorded in March and exceeding the previous monthly record of 18.7 billion cubic feet set in February. Buyers from Europe and Asia continue to absorb US LNG, keeping export terminals operating at high capacity.

According to the latest data from the US Energy Information Administration, natural gas storage levels rose by 79 billion cubic feet last week. This increase was lower than the 105 billion cubic feet added during the same period last year and also below the five-year average. Tightening supply coupled with robust export demand pushed natural gas futures prices up by more than 4% during the trading session, reaching $3.06 per million British thermal units.