April Nymex natural gas (NGJ26) closed down $0.108 (-3.45%) on Monday, largely impacted by a 5% drop in crude oil prices and a mixed US weather report predicting above-average temperatures across the western US, which may reduce heating demand for natural gas through March 25. Earlier this month, natural gas prices surged to a three-year high after Qatar’s Ras Laffan plant, responsible for around 20% of global liquefied natural gas supply, closed following an Iranian drone attack.
On Monday, US dry gas production was reported at 112.5 billion cubic feet per day (bcf/day), a 4.9% increase year-over-year, while gas demand reached 92.8 bcf/day, up 21.1% year-over-year. Estimated LNG net flows to US export terminals stood at 20.3 bcf/day, reflecting an 8.8% weekly rise. Last week, the EIA adjusted its 2026 US dry natural gas production estimate upwards, anticipating an increase to 109.97 bcf/day, as active US drilling rigs reached a 2.5-year high.
