Natural gas Hits 17-month Low

US natural gas futures hovered around $2.72 per MMBtu, near their lowest level since November 2024, as milder weather forecasts signaled weaker demand. Temperatures projected to stay mostly warmer than normal through April 23, keeping heating needs subdued. Analysts noted that the early spring warmth has enabled larger-than-usual storage injections, with inventories projected to reach about 5% above normal for the week ended April 3, up from 3% above normal the previous week. Meanwhile, Israeli strikes in Lebanon raised doubts over whether President Trump’s ceasefire agreement with Iran would hold. The latest attack prompted Iran to block the Strait of Hormuz, though the White House denies the waterway is closed. Despite the geopolitical uncertainty, US natural gas remain largely insulated from the overseas disruptions, as domestic export terminals are already operating near full capacity.

Natural gas decreased to 2.71 USD/MMBtu, the lowest since November 2024. Over the past 4 weeks, Natural gas lost 12.89%, and in the last 12 months, it decreased 28.78%.

US natural gas futures fell more than 5% to $2.71 per MMBtu on Wednesday, erasing the previous session’s gains to hit their lowest level since November 2024. The gas market tracked broader weakness across global energy markets after the US and Iran agreed to a two-week ceasefire, which is expected to pause the American-Israeli military campaign in exchange for Tehran reopening the Strait of Hormuz. Iran said safe passage through the strait would be possible via coordination with its armed forces. Additional pressure came from forecasts pointing to milder weather and weaker demand over the next two weeks, with temperatures projected to stay mostly warmer than normal through April 22. Tuesday’s brief rebound, when gas prices rose 2.1%, was supported by a drop in daily output. US production has fallen by 3 bcfd over the past two days to a two-week low of 108.9 bcfd, driven by declines in Louisiana and Arkansas.