NEW YORK: US natural gas futures slid about 2percent on Wednesday on ample and growing amounts of gas in storage and forecasts for less demand next week than previously expected.
On its first day as the front-month, gas futures for June delivery on the New York Mercantile Exchange fell 5.6 cents, or 2.1percent, to USD2.635 per million British thermal units (mmBtu). In the cash market, average prices at the Waha Hub in West Texas have remained in negative territory for a record 58 days in a row as pipeline constraints continued to trap gas in the Permian region, the nation’s biggest oil-producing shale basin. Daily Waha prices first averaged below zero in 2019.
They did so 17 times in 2019, six times in 2020, once in 2023, 49 times in 2024, 39 times in 2025, and a record 67 times so far this year. Waha prices have averaged a negative USD2.15 per mmBtu so far in 2026, compared with a positive USD1.15 in 2025 and a positive USD2.88 over the past five years (2021-2025).
Financial firm LSEG said average gas output in the US Lower 48 states has fallen to 110.0 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 down even more, falling by around 1.2 bcfd over the past four days to a preliminary two-week low of 108.4 bcfd on Wednesday as low spot prices prompted energy firms like EQT, the second-largest US gas producer, to temporarily reduce production. Preliminary data, however, is often revised later in the day.
Analysts said mostly mild weather this spring has allowed energy firms to inject more gas into storage than usual, boosting inventories to a forecast 8percent 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 slightly cooler than normal through May 14.
Cool weather in May, however, does not usually generate a lot of heating demand but does knock out early spring air conditioning use. LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 102.1 bcfd this week to 99.6 bcfd next week. The forecast for next week was similar to LSEG’s outlook on Tuesday. Average gas flows to the nine big US LNG export plants have risen to 18.8 bcfd so far in April, up from 18.6 bcfd in March. That figure compares with a monthly record high of 18.7 bcfd in February.
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