US Natgas Prices Rebound on Tuesday

US natural gas futures rose to $2.95 per MMBtu on Tuesday, rebounding after a 4.6% drop in the previous session and marking a roughly 3% gain for March, supported by LNG feedgas demand linked to disruptions at the Strait of Hormuz. Looking ahead, warmer than expected weather forecasts across the eastern US are likely to weigh on demand, with above average temperatures projected from late March into early April and again mid month, reducing heating needs and supporting expectations of rising stockpiles. Although the EIA reported a larger than usual storage draw last week, it is seen as the final withdrawal of the winter season, with inventories expected to shift from a slight surplus in mid March to a larger surplus by mid April. Meanwhile US gasoline prices climbed above $4 per gallon for the first time since August 2022, reflecting the impact of the escalating Middle East conflict, with prices rising more than $1 since the war began.

Natural gas decreased to 2.83 USD/MMBtu, the lowest since February 2026. Over the past 4 weeks, Natural gas lost 3.5%, and in the last 12 months, it decreased 27.7%.

US natural gas futures dropped to $2.82 per MMBtu, their lowest level in over a month, as warmer weather forecasts across the eastern US reduced demand expectations heading into spring. Temperatures are now seen above average from March 30 to early April and again mid month, limiting heating needs and supporting expectations of rising stockpiles. While the EIA reported a larger than usual storage draw last week, it is widely seen as the final withdrawal of the winter season, with inventories projected to shift from a small surplus in mid March to a much larger surplus by mid April. Meanwhile, President Trump said a deal to end Middle East war is likely but warned of potential strikes on Iran’s oil infrastructure if the Strait of Hormuz is not reopened. Despite the tensions, US gas prices remain relatively stable due to strong production, ample inventories, and limited short-term exposure to global markets. Prices were down 1% so far this month, on track for a second monthly decline.