Natural gas Hits 18-month Low

US natural gas futures dropped 3.6% to $2.52 per MMBtu, the lowest since October 2024, as mild weather forecasts through early May keep demand subdued and allow continued strong storage injections. Warmer-than-normal spring conditions have already pushed inventories to an estimated 8% above seasonal norms for the week ended April 24, up from 7% the previous week. Even with slightly cooler temperatures expected into early May, demand is unlikely to rise significantly as heating needs remain limited and cooling demand has yet to pick up. On the supply side, output has declined by about 4.1 bcfd over the past 18 days to an 11-week low of 108.1 bcfd, with lower prices prompting producers such as EQT to curb production. Meanwhile, LNG feedgas flows have increased to 18.9 bcfd in April, near record levels. For the week, gas prices fell about 5.8% after a 1% gain in the previous period.

Natural gas decreased to 2.56 USD/MMBtu, the lowest since October 2024. Over the past 4 weeks, Natural gas lost 11.81%, and in the last 12 months, it decreased 17.53%.

US natural gas futures fell to $2.5 per MMBtu, reaching their lowest since October 2024, pressured by ample storage levels and continued strong injections into inventories. A federal report showed utilities added 103 billion cubic feet of gas to storage for the week ended April 17, above expectations and well ahead of both the 77 bcf added in the same week last year and the five-year average build of 64 bcf. Mild spring weather has kept heating demand subdued, allowing above-normal injections and pushing total inventories to about 7.1% above typical levels. Looking ahead, forecasts suggest mostly near-normal temperatures through early May, limiting demand upside. On the supply side, output has declined by around 3.8 bcfd over the past 17 days to an 11-week low of 108.3 bcfd, while LNG feedgas flows have climbed to 18.9 bcfd so far in April, putting the month on track for a possible record.