NEW YORK: US natural gas futures edged up on Thursday following a drop in output over the past few days and forecasts for more demand than previously expected over the next two weeks.
Front-month gas futures for May delivery on the New York Mercantile Exchange rose 2.6 cents, or 1.0 percent, to USD2.636 per million British thermal units (mmBtu).
The US Energy Information Administration (EIA) said energy firms added 59 billion cubic feet (bcf) of gas into storage during the week ended April 10.
That was bigger than the 51-bcf build analysts forecast in a Reuters poll and compares with increases of 22 bcf during the same week last year and a five-year (2021 to 2025) average increase of 38 bcf for the period.
Analysts had said they expected a bigger-than-normal build because mild weather last week kept heating demand low. In the cash market, spot power and gas prices in parts of Texas and California traded in negative or record-low territory this week 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.
Next-day gas prices fell to record lows of negative USD9.56 per mmBtu at the Waha Hub in West Texas and positive USD1.16 at the PG&E Citygate in Northern California. For PG&E, that was the fourth daily record low in a row.
Financial firm LSEG said average gas output in the US Lower 48 states rose to 110.7 billion cubic feet per day (bcfd) so far in April, up from 110.4 bcfd in March. That compares with a monthly record high of 110.7 bcfd in December 2025.
On a daily basis, output was on track to drop by 3.2 bcfd over the past four days to a preliminary 10-week low of 108.0 bcfd on Thursday due mostly to declines in Louisiana and Ohio. Preliminary data, however, is often revised later in the day.
Meteorologists forecast the weather will remain mostly warmer than normal through May 1, keeping both heating and cooling demand low.
LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 101.3 bcfd this week to 100.8 bcfd next week. Those forecasts were higher than LSEG’s outlook on Wednesday.
Average gas flows to the nine big US LNG export plants rose 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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