US Natgas Drop From Recent Highs

2026-03-13 16:02 By Felipe Alarcon 1 min. read

US natural gas futures retreated below $3.15 per MMBtu in mid March as expectations for warmer spring weather and record domestic production outweighed the persistent supply concerns from the Middle East conflict.

Prices fell nearly 3% after a smaller than anticipated inventory withdrawal of 38 billion cubic feet indicated that heating demand is fading with the end of the winter season.

While the war with Iran continues to block the Strait of Hormuz and limit Qatari exports the impact on American prices has been softened by domestic production levels reaching 118.5 billion cubic feet per day.

A sudden shift in the market outlook following political statements regarding a potential end to hostilities also pulled global energy costs lower and reduced the price pressure on American fuel.

The US dollar strengthened generally because of safe haven buying during the geopolitical instability, making dollar priced commodities less attractive.



News Stream
US Natgas Prices Fall on Lower LNG Flows
US natural gas futures fell to $2.72 per MMBtu as supply increased in the domestic market, while exports declined. Pipeline flows to LNG export terminals dropped to the lowest level since late January due to routine spring maintenance, which temporarily reduces export capacity and leaves more gas in the US. Looking ahead, a gradual increase in cooling demand is expected as summer approaches. On the supply side, low prices have encouraged producers to reduce output. Companies such as EQT Corporation have scaled back drilling or temporarily curtailed production to avoid selling at weak prices. Still, storage remains about 7% above the seasonal average.
2026-05-05
US Natgas Prices Hover Near 4-Week Highs
US natural gas futures fell to $2.82 per MMBtu, though they remained near a four-week high, supported by declining output. Production has trended lower in recent months, as major producers such as EQT have scaled back activity in response to weak spot prices. While earlier mild spring weather enabled stronger-than-usual storage injections, the recent drop in production, along with cooler conditions and increased demand, likely narrowed the inventory surplus to around 7% above seasonal norms in the week ended May 1, down from 8% in the previous week. Meanwhile, temperatures are expected to remain broadly near normal through May 19, limiting sharp swings in demand. LNG export flows have also softened, averaging 17.4 bcfd so far in May, compared with April’s record of 18.8 bcfd.
2026-05-05
US Natgas Prices Rise to Near 4-Week High
US natural gas futures rose to $2.86 per MMBtu, reaching their highest level in nearly four weeks, supported by smaller storage injection, lower production, and near-record LNG exports. The EIA reported a 79 Bcf injection into storage for the week ended April 24, broadly in line with expectations of an 80 Bcf build, but smaller than both the previous week’s 103 Bcf and the 105 Bcf increase a year earlier. Additionally, production has weakened further, falling by around 2.0 bcfd over the past five days to a preliminary 12-week low of 107.6 bcfd, as major producers such as EQT curtailed output due to low prices. LNG export feedgas also rose to 18.8 bcfd so far in April from 18.6 bcfd in March, exceeding the previous monthly record of 18.7 bcfd set in February. Despite these, US gas prices still declined 4.1% in April, weighed by ample inventories amid mild weather conditions, following a modest increase of nearly 1% in March.
2026-05-01