US natural gas futures declined to $2.88 per MMBtu on Wednesday, erasing gains from the previous session and trading at their lowest level in more than three weeks. The move came amid growing expectations that oil exports from the Persian Gulf could resume.
The natural gas market mirrored broader weakness across global energy prices following reports that Washington is pursuing a month-long ceasefire in its confrontation with Iran and has put forward a 15‑point framework for negotiations. Tehran, however, has publicly denied that any talks are taking place.
Additional downward pressure stemmed from weather forecasts pointing to above‑normal temperatures through April 8, which are likely to curb heating demand over the coming weeks.
US natural gas prices have been far less sensitive to the Middle East conflict than prices in global markets. The United States produces enough gas to meet its own needs, and its LNG export terminals are already operating at full capacity. Consequently, even if global gas prices surge on geopolitical tensions, the US has limited ability to ramp up LNG exports in response.
