US Natural Gas Hovers Near $3 before EIA Storage Report
LNG futures in the United States climbed slightly to $2,99 per MMBtu on Thursday as the EIA report has not yet released.
Quick overview
- U.S. natural gas futures rose to $2.99 per MMBtu due to increasing oil prices, but an upcoming EIA report may reverse this trend.
- Iran has rejected a U.S. ceasefire plan but is exploring resolution options, contributing to a temporary spike in oil and LNG futures.
- The EIA report is anticipated to show a 51 Bcf withdrawal, but elevated inventory levels and warmer weather are expected to lower domestic demand for natural gas.
- New gas-run power plants are set to open in several states, potentially boosting the LNG market despite ongoing high inventory levels.
On Thursday, U.S. natural gas futures rose to $2.99 per MMBtu as oil prices also increased around the world, but the new EIA report could send the price back down.
Iran has denied the U.S. plan for a ceasefire in the Middle East, but they are considering a path toward resolution. The development caused oil prices to spike this morning and gave the U.S. LNG futures a boost as well, sending them close to $3 once more.
The incoming EIA report is expected to show a 51 Bcf withdrawal. If so, that would be the last weekly withdrawal before winter is over, and inventory levels are still elevated. They will likely continue to remain that way through the springtime.
Storage Report to Send Futures Lower
Weather forecasts call for rising temperatures all the way through April 9th, and the warmer temperatures should drive down the already low domestic demand for natural gas. The upcoming storage report from the EIA will tell the market how much gas was withdrawn last week, and when the inventory totals are calculated, we expect higher than normal levels to be reported.
Elevated inventory has been a problem for the domestic LNG market for over a month, and with demand dropping, the prices are sure to go down in the coming weeks. We may even see a 2026 spring and summer stretch similar to what happened in 2025. Last year, inventory levels were very high and demand remained low through the hot months, leading to very low market prices for LNG.
Production is expected to ramp up later this year, with several production facilities adding new lines and others opening up to increase supply to the United States market. These developments will likely raise inventory levels even higher and keep market prices subdued until late fall of 2026.
Several new gas-run power plants are expected to open in Ohio, Pennsylvania and Texas, and a new trade deal with Japan should result in a new gas-fired power plant in Appalachia as well. These power plants will be designed to meet increasing power needs and could help spur growth in the LNG market. Meanwhile, the world is watching developments in Iran that have an effect on the global LNG market but little impact on US prices.
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