NEW YORK: US natural gas futures edged up to a one-week high on Friday on a drop in output over the past few days and near-record gas flows to liquefied natural gas export plants over the past month.
That small price increase came despite forecasts for less demand next week than previously expected and a roughly 10percent drop in crude futures after Iran opened the Strait of Hormuz.
Front-month gas futures for May delivery on the New York Mercantile Exchange rose 2.7 cents, or 1percent, to settle at USD2.674 per million British thermal units, their highest close since April 8.
For the week, the front month was up about 1percent after falling 5percent last week and 10percent two weeks ago.
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.
Financial firm LSEG said average gas output in the US Lower 48 states rose to 110.6 billion cubic feet per day 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 a preliminary 2.9 bcfd over the past five days due mostly to declines in Texas and Louisiana. Preliminary data, however, is often revised later in the day.
On Tuesday, output fell to a 10-week low of 108.3 bcfd.
Analysts projected that mostly mild spring weather has allowed energy firms to inject more gas into storage than usual, boosting inventories to a forecast 7percent above normal levels during the week ended April 17, up from 6percent above normal during the week ended April 10.
Meteorologists forecast the weather will remain mostly warmer than normal through May 2, keeping both heating and cooling demand low.
LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 101.1 bcfd this week to 99.9 for the next two weeks. The forecast for next week was lower than LSEG’s outlook on Thursday.
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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