US Natgas Prices Fall after EIA Report

US natural gas futures traded around $2.64 per MMBtu on Monday, close to a seventeen-month low, as ample supply and subdued demand continued to weigh on prices. The EIA reported a 50 Bcf injection into storage for the week ended April 3, exceeding market expectations of a 46 Bcf build and accelerating from the previous week’s 36 Bcf increase. At the same time, mild weather forecasts across key US regions are keeping heating demand low, allowing utilities to continue adding gas to storage at an above-average pace for at least several more weeks. Meanwhile, geopolitical tensions escalated after President Donald Trump ordered a blockade of the Strait of Hormuz following failed talks with Iran, raising concerns over prolonged disruptions to global energy flows. However, US natural gas prices remain largely insulated from Middle Eastern supply risks due to robust domestic production, ample storage levels, and limited short-term exposure to international trade flows.

Natural gas futures fell 0.5% to around $2.65 per MMBtu on Friday, hovering near their lowest levels since late 2024, as ample supply and weak demand continued to weigh on prices. The EIA reported a 50 Bcf injection into storage, accelerating from the previous 36 Bcf build and reinforcing expectations of a well-supplied market. At the same time, mild weather forecasts across key US regions are keeping heating demand subdued, while production remains near record highs, adding further downward pressure. Ample supply and low heating demand drove drove natural gas prices to fall 28% year-to-date.

US natural gas futures held steady at $2.67 per MMBtu on Friday, the lowest level since November 2024, pressured by a larger-than-expected storage build last week and mild weather forecasts. The EIA reported a 50 Bcf injection into storage for the week ended April 3, above market expectations of a 46 Bcf build. The increase compares with a 53 Bcf injection in the same week last year and a five-year average build of 13 Bcf. Also, forecasts point to above-normal temperatures through at least April 24, keeping gas demand subdued over the next two weeks. On the geopolitical front, markets are monitoring weekend negotiations in Islamabad, where a US delegation led by Vice President JD Vance is scheduled to meet Iranian officials. The talks come after Israeli strikes in Lebanon put at risk a fragile ceasefire reached earlier this week. Despite the uncertainty, US gas prices remain insulated due to strong domestic production, with export facilities already operating near their limits.