Beirut: US natural gas futures climbed more than 5% on Monday as forecasts for hotter weather boosted expectations for power-sector demand, while increased flows to liquefied natural gas (LNG) export terminals tightened domestic supply.

According to Anadolu Agency, natural gas futures for September delivery rose 5.1% to $2.804 per million British thermal units (MMBtu) as of 1445GMT, marking their strongest intraday advance in more than two months. Weather forecasts shifted toward significantly higher temperatures across the central and southern US in the coming weeks. Above-normal temperatures are expected to persist through Aug. 25, supporting electricity demand as households and businesses increase air-conditioning use.

Demand from LNG facilities also strengthened, with daily flows to the nine major US export plants on track to reach a one-month high of 17.9 billion cubic feet per day (bcfd) as some terminals appeared to be completing seasonal maintenance. Average LNG feedgas demand stood at 17.2 bcfd in July, slightly below June's monthly record of 17.4 bcfd.

Relatively mild weather earlier in the year and strong production have kept inventories above their five-year average since March. Analysts expect the storage surplus to narrow slightly to 6.6% above normal in the week ending Aug. 7.