US natural gas futures fell to $2.67 per MMBtu, trading near their lowest levels since October 2024, as rising inventories and mild weather weighed on prices. Warmer-than-normal spring temperatures have curbed heating demand, lifting storage to an estimated 8% above the seasonal average for the week ended April 24, up from 7% the previous week. While forecasts indicate slightly cooler-than-normal conditions from late April into early May, the anticipated dip in temperatures is not expected to be sufficient to drive a meaningful increase in consumption.
On the supply side, output has begun to ease in April, with daily production declining by 3.8 bcfd over the past 22 days to a preliminary 12-week low of 108.3 bcfd, as low prices prompted major producers such as EQT to trim supply. At the same time, LNG export feedgas demand has strengthened, averaging 18.9 bcfd so far in April, up from 18.6 bcfd in March and surpassing the prior monthly record of 18.7 bcfd set in February.
