Oil & Energy
US Natural Gas Posts Weekly Decline on Iran Ceasefire, Bearish Weather Forecasts
US natural gas futures settled lower over the week, amid the ceasefire between the US, Israel and Iran, along with bearish weather forecasts.The front-month contract price fell over the week to $2.65 per million British thermal units, from $$2.80/MMBtu on Apr. 2.The markets were off to a strong start this week but trended lower after Iran announced ceasefire negotiations, hinting at a quick resolution of hostilities in the Middle East.While the truce is temporary, set to last only for two weeks, and already showing its fragility, it did manage to calm the markets over the week.For the week ended Apr. 8, the May 2026 Nymex contract was down $0.09 at $2.72/MMBtu, compared with $2.81/MMBtu the prior week, the Energy Information Administration's Weekly Gas Storage Supplement said.Natural gas spot prices fell by $0.19 to $2.80/MMBtu during the week ended Apr. 8, according to the EIA, from $2.99/MMBtu last week. Price changes were mixed across most regional hubs, from a $0.56/MMBtu decrease at the Waha Hub to a $0.20 gain at the SoCal border.Prices across the Gulf Coast and Southeast regions were similarly mixed, with a $0.21 decline at the Florida Gas Zone 3 to $2.83/MMBtu and a $0.06 rise at the Houston Ship Channel to $2.44/MMBtu.Natural gas consumption in the Southeast electric power sector rose 3%, or 0.2 billion cubic feet per day, according to the EIA, citing LSEG data.The EIA reported a net injection of 50 Bcf into storage for the week ended Apr. 3, up from a net injection of 36 Bcf last week, and bringing total gas inventories to 1,911 Bcf.During the same week last year, the EIA reported a net injection of 53 Bcf, while the five-year average for this period was an injection of 13 Bcf. This week's figures were also above the 41 Bcf forecast, according to data compiled by Investing.com.The total gas inventories at 1,911 Bcf are now 89 Bcf, or 5% above the corresponding period a year ago, and 87 Bcf, which is again 5% higher than the five-year average for this period.Working gas in storage rose across all regions, except the Mountain, with South Central posting the largest gain of 32 Bcf, bringing its balances to 1.2% above its five-year average.Meanwhile, inventories across the East and Midwest have narrowed their working gas deficits to just 11% relative to their respective five-year averages.According to Pinebrook Energy Advisors, the EIA weekly report offered little new direction for the market. Demand is expected to continue its seasonal decline amid above-normal temperatures across most of the country, which is expected to hit cooling gas demand.A total of 37 liquefied natural gas carrying vessels left US ports during the week, down from 39 vessels last week. The total capacity of these vessels stood at 141 Bcf, down 8 Bcf from the prior week.Weather forecasts continued to turn bearish, with almost the entire country expected to see above-normal temperatures from Apr. 17 to Apr. 23, according to the National Weather Service.The number of gas rigs dropped by three from 130 the previous week to 127, in the week ending Apr. 10, according to data from Baker Hughes (BKR) released Friday. The US had 105 gas rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, dropped by 10 to 680 from 690 the previous week.In international markets, European TTF gas prices averaged $16.88/MMBtu for the week ended Apr. 8, $0.86/MMBtu lower compared to the previous week. The Japan-Korea Marker averaged $19.85/MMBtu, about $0.43/MMBtu lower than the prior week.
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