Natural gas Hits 4-week Low

US natural gas futures slumped to around $3.02 per MMBtu, reversing gains from the previous session and marking its lowest level in four months, as forecasts for warmer weather reduced expectations for heating demand. Central and southern areas of the US are anticipated to see above-average temperatures over the coming two weeks, according to NOAA. The March contract spiked last month to a three-year high following a winter storm that pushed up demand and temporarily disrupted supply. The sharp Monday move also reflected thin holiday liquidity for President’s Day, which can amplify price swings. Settlements and normal trading will resume Tuesday, with the market closely watching the weather outlook and storage reports for guidance on near-term price direction. Meanwhile, fundamentals remain supportive. US working gas inventories are roughly 130 bcf below the five-year average, while LNG exports continue near record levels, sustaining structural demand.

Natural gas decreased to 3.04 USD/MMBtu, the lowest since January 2026. Over the past 4 weeks, Natural gas lost 2.1%, and in the last 12 months, it decreased 24.19%.

US natural gas futures rose to around $3.23 per MMBtu driven by strong LNG export demand and continued heavy storage withdrawals. Energy firms withdrew 249 billion cubic feet of gas from storage in the week to February 6, following a record 360 bcf draw the previous week, as prolonged Arctic cold boosted heating demand. Although the latest withdrawal was slightly below forecasts, it was far larger than the 111 bcf draw a year earlier and well above the five year average of 146 bcf. LNG demand remained robust, with flows to the eight major US export plants averaging 18.5 bcfd so far in February, close to record levels. Domestic output also edged higher to 107.6 bcfd, up from 106.3 bcfd in January. However, weather forecasts point to mostly warmer than normal conditions through late February, which could ease demand and limit further price gains.