US natural gas prices dip on weak demand, high storage levels

NEW YORK: US natural gas futures slid about 2percent on Tuesday on forecasts for less demand than previously expected, ample amounts of fuel in storage and a drop in the amount of gas flowing to liquefied natural gas (LNG) export plants during the usual spring maintenance season.

Front-month gas futures for June delivery on the New York Mercantile Exchange fell 4.3 cents, or 1.5percent, to USD2.867 per million British thermal units (mmBtu). On Monday, the contract rose to its highest since March 27.

In the cash market, average prices at the Waha Hub in West Texas have remained in negative territory for a record 67 days in a row as pipeline constraints trap gas in the Permian region, the nation’s biggest oil-producing shale basin. 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 109.6 bcfd in April and a monthly record high of 110.6 bcfd in December 2025. Output has declined in recent weeks as low spot prices caused some energy firms, like EQT, the second-largest US gas producer, to reduce production as they wait for prices to rise in the future.