US Natgas Prices Drop to Over 7-Month Low

US natural gas futures fell to $2.78 per MMBtu on Monday, hitting their lowest level since August 2025, as mild spring weather continued to suppress demand and allow storage levels to build. The latest EIA data showed a 36 Bcf injection for the week ending March 27, compared with a five-year average withdrawal of 4 Bcf. Meanwhile, President Donald Trump on Sunday issued an ultimatum to Iran, threatening to strike Iranian oil facilities and other civilian infrastructure if the Strait of Hormuz is not reopened. Tehran, however, rejected the demand. Despite the tensions, US natural gas remain largely insulated from the overseas supply shock, as domestic export terminals are already operating near full capacity. Meanwhile, reports indicated that two LNG tankers from Qatar are heading toward the Strait, potentially marking the first exports outside the region since the conflict began. One is bound for China, while the other’s destination is undisclosed.

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.