NEW YORK: US natural gas futures rose about 2percent on Friday on near-record liquefied natural gas export flows and higher global energy prices amid concerns over potential supply disruptions after the United States and Iran extended nuclear talks into next week.
The increase in gas futures came despite forecasts for warmer weather and lower heating demand over the next two weeks than previously expected.
Front-month gas futures for April delivery on the New York Mercantile Exchange rose 4.9 cents, or 1.7percent, to USD2.876 per million British thermal units. On Thursday, the contract closed at its lowest since September 22.
For the week, the front-month was down about 6percent, putting it down for a fifth week in a row for the first time since August 2025. During the past five weeks, the contract was down by around 45percent.
For the month, the front-month was down about 34percent in February after rising about 18percent in January. In the cash market, average prices at the Waha Hub in West Texas remained in negative territory for a record 16th day in a row, as pipeline constraints trapped gas in the nation’s biggest oil-producing basin.
Daily Waha prices first averaged below zero in 2019. They did so 17 times in 2019, six times in 2020, once in 2023, a record 49 times in 2024, 39 times in 2025, and 25 times so far this year.
Waha prices have averaged 40 cents per mmBtu so far in 2026, compared with USD1.15 in 2025 and USD2.88 over the past five years (2021-2025).
In Northern California, next-day gas at the PG&E Citygate fell to a record low of USD1.37 per mmBtu. That compares with the prior all-time low of USD1.43 in November 2001 and averages of USD2.30 so far in 2026, USD3.42 in 2025, and USD5.47 over the past five years (2021-2025).
Average gas output in the Lower 48 states climbed to 108.7 billion cubic feet per day (bcfd) so far in February, up from 106.3 bcfd in January, according to data from financial firm LSEG. That compares with a monthly record high of 109.7 bcfd in December.
Energy analysts projected a winter storm earlier this week likely caused energy firms to pull more gas out of storage than usual for this time of year, knocking stockpiles down from near-normal levels during the week ended February 20 to about 2percent below normal for the week ended February 27.