Natural gas prices hit a new 7.5-month low on Friday, with May Nymex futures closing down 0.82% amid forecasts of mild spring weather across the eastern U.S. This outlook is expected to dampen heating demand, contributing to the bearish sentiment. Additionally, the EIA’s upward revision of U.S. dry natural gas production for 2026 to 109.59 bcf/day reinforces the oversupply narrative, as current production levels are near record highs.
While the near-term outlook appears weak due to rising inventories and lower demand, medium-term support could emerge from tighter global LNG supplies. Damage to Qatar’s Ras Laffan plant, which accounts for 20% of global LNG exports, may limit international supply and boost U.S. exports. Furthermore, the ongoing geopolitical tensions affecting gas supplies to Europe and Asia could further influence market dynamics.
Market participants should monitor the interplay between domestic production levels and international supply disruptions, as these factors will shape pricing trends in the coming months.
Source: nasdaq.com