US natural gas futures fell more than 3% to around $2.80 per MMBtu, pressured by expectations of weaker demand, high storage levels, and reduced LNG feedgas flows. Mild spring weather earlier in the season enabled utilities to inject more gas into storage than usual, pushing inventories to roughly 7% above the seasonal average as of early May.
Weather forecasts now point to mostly near-normal conditions through late May, limiting any near-term demand upside. LNG exports have also eased, with gas flows to major US export terminals averaging 17.1 bcfd so far in May, down from April’s record 18.8 bcfd, largely reflecting seasonal maintenance.
On the supply side, domestic production has edged lower. Output from the US Lower 48 has slipped to about 109.3 bcfd from April levels, as persistently low spot prices led some producers, including EQT, to scale back production.
