US Natural Gas Futures Drop, Set for Second Annual Gain

2025-12-31 15:30 By Joana Ferreira 1 min. read

US natural gas futures tumbled to around $3.70 per million British thermal units, their lowest level since October 23, pressured by forecasts of above-normal temperatures next week.

Heating Degree Days (HDDs), which measure energy demand for heating, are expected to fall from 439 on Tuesday to 413 on Wednesday, signaling reduced short-term demand.

LSEG projected average gas demand in the lower 48 states, including exports, to edge lower from 137.8 bcfd this week to 134.5 bcfd next week, below earlier forecasts.

Meanwhile, the EIA expects dry gas production to rise to 109.1 bcfd in 2026, up from a record 103.6 bcfd in 2023.

Despite today’s decline, natural gas is on track for a roughly 4% gain in 2025, marking a second consecutive annual rise, supported by record LNG export flows.

Looking ahead, the market is expected to remain buoyed in 2026 by rising demand for electrification and gas-fired power generation.



News Stream
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