US natural gas futures dropped to $4.13/MMBtu after the EIA reported a larger-than-expected inventory build. US utilities added 9 billion cubic feet of gas to storage for the week ending March 14, surpassing forecasts of 3 billion cubic feet.
US natgas prices fall after inventory build
This marks the first stock increase since November 2024, narrowing the storage deficit and easing concerns over tight supplies. Currently, gas stocks remain 26.8% lower than a year ago and 10% below the five-year average, indicating that inventories are still under pressure despite the recent injection.
Meanwhile, LNG exports surged to a record 15.7 bcfd in March, supported by expanded operations at Venture Global’s Plaquemines LNG facility and strong global demand, particularly from Europe and Asia. Elevated exports continue to play a key role in balancing domestic supply and demand, influencing price movements.
Temperature effect on prices
Looking ahead, temperatures are expected to stay near seasonal averages through early April, which could moderate residential and commercial heating demand. However, potential shifts in weather patterns, including any late-season cold spells, could still impact consumption. On the supply side, natural gas production in the Lower 48 states climbed to 105.7 bcfd in March, exceeding February’s record of 105.1 bcfd. Robust output, coupled with the latest storage injection, may help stabilize prices in the near term, though market volatility remains amid fluctuating demand and geopolitical factors affecting global energy markets.
