US Natgas Prices Hover at 2-Week High

US natural gas futures rose to a two-week high of $2.70 per MMBtu, supported by a recent decline in production and near-record flows to LNG export facilities. Average output has fallen by around 3.9 bcfd over the past 15 days to an 11-week low of 108.2 bcfd, while deliveries to major LNG terminals have climbed to 18.9 bcfd in April, putting the month on track for a possible record. Despite this, prices remain close to their lowest level since October 2024 due to a large storage surplus, with inventories boosted by mild spring weather that has enabled strong injections and left stockpiles about 7% above the five-year average as of April 17. Forecasts have turned warmer across the US Midwest through late April, reducing expected heating and power demand and pointing to further inventory builds as the market moves deeper into the low-demand spring shoulder season.

US natural gas futures dropped to $2.66 per MMBtu, trimming some of the gains from previous sessions as they tracked a broader decline in energy markets amid hopes for a negotiated end to the Middle East conflict. US Vice President JD Vance is set to travel to Pakistan for the second round of peace talks, while Iran is expected to send a delegation after earlier expressing hesitation about participating. Additional pressure came from a persistent storage surplus. Unseasonably mild spring weather has allowed for strong inventory injections, lifting stockpiles to an estimated 7% above the five-year average for the week ended April 17. Looking ahead, forecasts for near-normal temperatures through early May are likely to keep demand subdued, while analysts expect storage levels to remain elevated. Gains in previous sessions had been supported by a drop in output over the past couple of weeks and near-record gas flows to US LNG export plants.

US natural gas futures climbed to $2.70 per MMBtu, supported by a drop in output over the past couple of weeks and near-record gas flows to US LNG export plants, but were still close to their lowest level since October 2024. Average daily output dropped by approximately 3.9 bcfd over the last fortnight to a 10-week low of 108.3 bcfd. Simultaneously, gas deliveries to major US LNG terminals rose to 18.9 bcfd so far in April, positioning the month for a potential record high. However, the upside remains capped by a persistent storage surplus. Unseasonably mild spring weather has facilitated aggressive inventory injections, pushing stockpiles to an estimated 7% above the five-year average during the week ended April 17. Looking ahead, meteorologists forecast near-normal temperatures through early May, and analysts expect storage levels to stay elevated.