Nat-Gas Prices Tumble as US Weather Forecasts Cool
Barchart
Last updated: June 9, 2026
Natural gas prices declined to a one-week low, influenced by a shift towards milder weather forecasts in the US, potentially reducing demand for air conditioning. However, geopolitical factors like the Strait of Hormuz closure and damage to Qatar's LNG export plant are providing some price support by limiting global supply.
- US dry gas production is at high levels, with forecasts for 2026 production showing an increase, which generally exerts downward pressure on prices.
- Demand for natural gas in the US has risen, and LNG net flows to export terminals are increasing.
- Medium-term price support comes from tighter global LNG supplies due to extensive damage at Qatar's Ras Laffan LNG export plant and the closure of the Strait of Hormuz, which impacts Middle Eastern exports.
- US electricity output has increased year-over-year, a factor that supports natural gas prices.
- Recent EIA reports indicated that natural gas inventories rose less than expected and are slightly above the 5-year average, suggesting adequate supplies. European gas storage is notably below its 5-year average.
- The number of active US natural gas drilling rigs has decreased slightly from a recent high but remains elevated compared to historical lows.
