Shares of power producers rose as hot weather continued to drive up air conditioning demand while natural gas prices pulled back despite another below-average increase in supplies.

U.S. natural gas futures fell for a third straight session as higher production and weakness in LNG exports offset forecasts for strong weather-driven demand. The large inventory surplus shrank last week, with the EIA reporting an injection into underground storage of 52 billion cubic feet, down from the five-year average for the week of 85 Bcf.

"The pace surpluses are being reduced appears to not be quick enough for many, evidenced by strong selling the past two weeks," forecaster NatGasWeather.com said. "But surpluses are still expected to be reduced towards +400 Bcf after the next five EIA reports print smaller than normal builds, barring a surprise." 


Write to Patrick Sullivan at patrick.sullivan@wsj.com

(END) Dow Jones Newswires

06-27-24 1819ET