US Natgas Prices Hover Near 18-Month Low

US natural gas futures edged up $2.52 per MMBtu but remained close to their lowest level since October 2024, weighed by rising inventories and mild weather conditions. Above-normal spring temperatures have lifted storage levels to an estimated 8% above seasonal norms for the week ended April 24, up from 7% the previous week. Although forecasts suggest temperatures may turn slightly cooler than normal from late April into early May, any boost to demand is expected to be limited, as heating needs have largely faded while summer cooling demand has yet to meaningfully emerge. On the supply side, production has fallen by around 4.1 bcfd over the past 18 days to an 11-week low of 108.1 bcfd, as low prices led major producers such as EQT to scale back output. Meanwhile, LNG feedgas flows have risen to 18.9 bcfd so far in April, close to record highs.

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%.