April Nymex natural gas prices closed down 3.21% on Tuesday, falling $0.100, after a decline of 2.07% the previous day. This drop follows a significant rally of 11.44% last week, driven by geopolitical tensions relating to the war in Iran. President Trump stated on Monday that the military operation would conclude soon, which contributed to the milder weather impacting natural gas demand.
The European natural gas prices surged to a three-year high last week amid the escalation in Iran, while Qatar’s closure of the Ras Laffan plant—responsible for about 20% of the global liquefied natural gas supply—could further boost U.S. natural gas exports. Concurrently, the Energy Information Administration projected an increase in U.S. dry natural gas production for 2026 to 109.97 billion cubic feet per day, up from 108.82 billion cubic feet per day, amid near-record production levels currently.
Recent EIA reports showed a notable draw in natural gas inventories, with a reduction of 132 billion cubic feet for the week ended February 27, exceeding market expectations. Active U.S. natural gas drilling rigs decreased by two to 132 as of March 6, following a two-and-a-half-year high of 134 rigs the previous week.
