On Tuesday, April Nymex natural gas prices closed up by 3.18%, reaching a gain of +0.094. This increase is attributed to heightened demand for U.S. natural gas following the shutdown of Qatar’s Ras Laffan plant, the largest natural gas export facility globally, involved in an Iranian drone attack. The Ras Laffan plant accounts for approximately 20% of the world’s liquefied natural gas supply, which may lead to increased U.S. exports.
The Commodity Weather Group released forecasts indicating colder temperatures across the U.S. through March 12, boosting expectations for heating demand. On Tuesday, U.S. dry gas production reached 112.8 billion cubic feet per day (bcf/day), a 4.9% increase year-over-year, while total lower-48 state gas demand was reported at 86.3 bcf/day, down 5.6% year-over-year. Estimated net flows to U.S. LNG export terminals were 19.6 bcf/day, reflecting a 1.3% week-over-week increase.
Despite the price surge, projections for increased U.S. natural gas production could exert downward pressure on prices. The EIA recently raised its forecast for U.S. dry natural gas production for 2026 to 109.97 bcf/day, highlighting an uptick in active U.S. gas rigs, which reached a 2.5-year high of 134 rigs by the end of February.
