Natural Gas Rises More Than 1%

Natural gas prices rose to 2.91 USD/MMBtu on March 1, 2026, up 1.73% from the previous day as the war in the Middle East threatens global LNG supplies. Markets are closely monitoring the risk of disruptions in the Strait of Hormuz, a vital chokepoint that handles 20% of global LNG trade, including exports from Qatar. Tehran insists the strait remains open, yet shipping companies quickly began rerouting vessels away from the narrow waterway.

US natural gas futures fell to around $2.83 per MMBtu, nearing their lowest level since September, after the Energy Information Administration reported a smaller-than-usual storage draw. Utilities withdrew 52 billion cubic feet (bcf) last week, sharply below the 252 bcf pull a year earlier and the five-year average decline of 168 bcf. The draw was also much smaller than recent weekly withdrawals. Total inventories dropped to 2.018 trillion cubic feet, leaving stockpiles 7.5% above year-ago levels and just 0.3% below the five-year average, a notable shift from mid-February when storage was about 6% below normal. Strong production continues to weigh on prices, with Lower 48 output averaging 108.7 bcfd so far in February. Also, warmer weather forecasts across much of the western US are further curbing heating demand. Still, LNG exports remain strong at 18.7 bcfd and are on track for a monthly record.

US natural gas futures fell more than 2% to around $2.80 per MMBtu, approaching their lowest level since August, after a 1.3% rebound in the prior session, as traders awaited the weekly storage report from the US Energy Information Administration. Expectations for a smaller withdrawal of about 36 billion cubic feet last week, well below the heavy draws seen in prior weeks, added downward pressure. Production remains strong, with Lower 48 output averaging 108.7 bcfd in February, up from January. Although storage was about 6% below normal in mid-February, the deficit is expected to narrow to near 1% due to mild weather. Warmer weather forecasts across much of the western United States through month-end are also dampening heating demand and easing power sector consumption. With winter nearing its end, the likelihood of a late-season cold snap tightening supplies has diminished. Still, LNG exports remain robust at 18.7 bcfd and are on pace for a monthly record.