NEW YORK: US natural gas futures climbed about 3percent on Monday from a 17-month low in the prior session on a drop in output in recent weeks, forecasts for more demand this week than previously expected and near-record liquefied natural gas (LNG) exports.
On its second-to-last day as the front-month contract, gas futures for May delivery on the New York Mercantile Exchange rose 7.8 cents, or 3.1percent, to USD2.601 per million British thermal units (mmBtu). On Friday, the contract notched its lowest close since October 29, 2024.
Futures for June, which will soon be the front-month contract, were up 4percent to USD2.79 per mmBtu. In the cash market, some power and gas prices in Texas and California traded in negative territory for a third week in a row as mild weather kept both heating and cooling use low, allowing ample amounts of hydro and other renewable sources of energy to meet more demand.
Financial firm LSEG said average gas output in the US Lower 48 states has eased to 110.1 billion cubic feet per day (bcfd) so far in April, down from 110.4 bcfd in March. That figure compares with a monthly record high of 110.7 bcfd in December 2025.
On a daily basis, output was on track to drop by around 0.7 bcfd over the past five days to a preliminary 108.8 bcfd on Monday as low spot prices prompted energy firms like EQT, the second-largest US gas producer, to cut production. Preliminary data, however, is often revised later in the day.
Analysts said mostly mild weather so far this spring has allowed energy firms to inject more gas into storage than usual, boosting inventories to a forecast 8 percent above normal levels during the week ended April 24, up from 7percent above normal during the week ended April 17.
Looking ahead, meteorologists forecast the weather will remain mostly near normal through May 12. LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 102.0 bcfd this week to 100.1 bcfd next week. The forecast for this week was higher than LSEG’s outlook on Friday.
Average gas flows to the nine big US LNG export plants have risen to 18.9 bcfd so far in April, up from 18.6 bcfd in March. That reading compares with a monthly record high of 18.7 bcfd in February.
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