U.S. natural gas futures decreased, as traders monitored shifting weather forecasts to assess the outlook for spring demand and supply levels. U.S. natural gas futures for June delivery decreased 0.07 USD/ MMBtu to trade at 3.35 USD/ MMBtw.

The U.S. and China have recently reached an agreement that will grant U.S. natural gas exports easier access to Chinese markets. This agreement is expected to encourage U.S. trade to China, including suppliers of liquefied natural gas. The exact provisions of the deal are still unclear, but it is believed that the deal will call for China to open gas markets and joint investment in infrastructure projects that will be needed to process and import the liquefied natural gas.

Production has increased however demand for natural gas is also increasing which is causing the upwards pressure on the market. A lot of markets in Canada and the U.S. are moving from coal to natural gas as well as several U.S. States are banning fracking or calling for a ban on fracking due to environmental concerns, as well as LNG exports to Australia and a pipeline to Mexico.