US natural gas futures climbed to $2.68 per MMBtu on Monday but remained near a seventeen-month low, as abundant supply and muted demand continued to pressure the market. The EIA reported a 50 Bcf build in storage for the week ended April 3, surpassing consensus expectations of a 46 Bcf injection and accelerating from the prior week’s 36 Bcf increase. At the same time, mild weather forecasts across key US regions are keeping heating demand subdued, enabling utilities to inject gas into storage at an above-average pace that is likely to persist for at least several more weeks.
On the geopolitical front, tensions intensified after President Donald Trump ordered a blockade of the Strait of Hormuz following unsuccessful talks with Iran, heightening concerns over potential long-lasting disruptions to global energy flows. Nevertheless, US natural gas prices remain largely insulated from Middle Eastern supply risks, underpinned by strong domestic production, comfortable storage levels, and limited near-term exposure to international trade flows.
