US natural gas futures climbed to $2.53 per MMBtu but remained near their lowest levels since October 2024, pressured by elevated inventories and mild weather. Above-normal spring temperatures have pushed storage to an estimated 8% above the seasonal average for the week ended April 24, up from 7% the previous week. While forecasts indicate temperatures may dip slightly below normal from late April into early May, any resulting increase in demand is expected to be modest, as heating requirements have largely subsided and significant summer cooling demand has yet to emerge.
On the supply side, production has declined by about 4.1 bcfd over the past 18 days to an 11-week low of 108.1 bcfd, as persistently low prices prompted major producers such as EQT to curb output. At the same time, LNG feedgas flows have risen to 18.9 bcfd so far in April, approaching record highs.
