US natural gas futures slipped to about $3.08 per MMBtu on Tuesday, extending losses for a second straight session as concerns over prolonged supply disruptions eased. On Monday, G-7 finance ministers signaled they were prepared to tap strategic oil reserves if necessary, and President Trump indicated that the ongoing conflict might be nearing a conclusion.
Even so, risks to energy markets persist. The world’s largest LNG export terminal remains offline, and the Strait of Hormuz is still closed. By comparison with global benchmarks, US natural gas prices have been relatively insulated, as domestic production is sufficient to cover local demand and LNG export capacity is already close to its ceiling.
In addition, forecasts for warmer-than-normal weather across much of the United States through late March are expected to curb heating demand, further dampening upward pressure on prices.
