On February 10, Nymex natural gas futures (NGG26) fell by 0.025 (-0.80%), though prices stayed above a three-month low reached the previous day. This decline is largely attributed to abundant US supplies, with the latest EIA report indicating natural gas storage levels are 3.4% above the five-year seasonal average.
Despite falling prices, forecasts of colder-than-normal temperatures in parts of the US could increase heating demand. The Commodity Weather Group projects below-normal temperatures across much of the northern US between January 21-30. Additionally, ongoing issues at the Cheniere’s Corpus Christi and Freeport LNG export facilities have led to reduced feedgas levels, further contributing to storage build-up.
As of January 13, US dry gas production stood at 113.0 bcf/day, an 8.7% increase year-on-year, while demand was recorded at 104.9 bcf/day, a decline of 2.4% year-on-year. The EIA recently revised its 2026 production forecast down to 107.4 bcf/day from 109.11 bcf/day, indicating tighter future supply scenarios.
