US Natgas Jumps on Global Supply Risks

US natural gas futures dropped toward $2.80 per MMBtu, approaching their lowest level since August 2025, after the EIA reported a slightly larger-than-expected storage build. Energy companies injected 36 billion cubic feet (bcf) of gas into storage last week, compared with 30 bcf during the same week in 2025 and a five-year average withdrawal of 4 bcf. Total inventories rose to 1.865 trillion cubic feet, about 5.4% higher than a year ago and roughly 3% above the five-year average. Meanwhile, reports indicated that Iran is drafting a protocol with Oman to monitor traffic through the Strait of Hormuz, citing Iran’s Deputy Foreign Minister Kazem Gharibabadi. The development comes after a speech by President Donald Trump offered no clear path toward ending the Middle East conflict, leaving markets cautious. Despite the tensions, US gas prices remain relatively stable due to strong production, ample inventories, and limited short-term exposure to global markets.

US natural gas futures rose to $2.86 per MMBtu, rebounding from a more than six-month low, tracking broader gains across energy markets as hopes for a swift resolution to the Middle East war faded. President Donald Trump said the US is “nearing completion” on achieving strategic objectives in Iran but provided little clarity on the pathway to end hostilities. He also warned of severe military action against Iran over the next two to three weeks. However, price gains were tempered by the onset of the spring shoulder season, when heating demand typically declines and storage levels increase. Weather forecasts point to above-average temperatures across the eastern US into early April and again around mid-April, reducing gas consumption. Markets now expect a faster rise in inventories, widening from a small surplus in mid-March to a larger surplus by mid-April.

US natural gas futures fell to $2.86 per MMBtu, hitting their lowest level in over a month, as the market enters the spring shoulder season, which typically reduces heating demand and allows storage levels to build. Weather forecasts showed above-average temperatures across the eastern half of the US, from late March into early April and again around mid-month, potentially reducing gas consumption. As a result, markets anticipate that inventories will rise more rapidly in the coming weeks, expanding from a small surplus in mid-March to a larger surplus by mid-April. Natgas prices gained 0.9% in March, supported by LNG feedgas demand following supply disruptions at the Strait of Hormuz. Meanwhile US gasoline prices have crossed $4 per gallon for the first time since August 2022, climbing more than $1 per gallon since the Midde East war began.