US natural gas futures drop as LNG export flows drop, Iran peace talks weigh

NEW YORK: US natural gas futures eased to a one-week low on a reduction in flows to liquefied natural gas (LNG) export plants during the normal spring maintenance season and as news the US and Iran were closing in on an agreement to end the Iran war caused prices to dive across the energy complex.

Oil futures plunged over 10percent earlier this morning on the Iran war news.

Front-month gas futures for June delivery on the New York Mercantile Exchange fell 3.5 cents, or 1.3percent, to USD2.753 per million British thermal units (mmBtu), putting the contract on track for its lowest close since April 29. In the cash market, average prices at the Waha Hub in West Texas have remained in negative territory for a record 63 days in a row as pipeline constraints trap gas in the Permian region, the nation’s biggest oil-producing shale basin.

Financial group LSEG said average gas output in the US Lower 48 states slid to 109.3 billion cubic feet per day (bcfd) so far in May, down from 109.5 bcfd in April and a monthly record high of 110.6 bcfd in December 2025. Output has declined over the past couple of months due in part to low spot prices, which prompted energy firms like EQT, the second-largest US gas producer, to temporarily reduce production as they wait for prices to rise later in the year.

Analysts said mostly mild weather earlier this spring allowed energy firms to inject more gas into storage than usual. They noted, however, that recent output declines coupled with cooler weather and higher demand likely reduced the inventory surplus to around 7percent above normal during the week ended May 1, down from 8percent above during the week ended April 24.