April natural gas prices surged by 6.09% on Friday, closing at +0.183, reaching a one-month high amidst escalating tensions from the ongoing war in Iran. Concerns about potential disruptions to global gas supplies, particularly with the closure of the Strait of Hormuz, may increase demand for U.S. natural gas, especially after Qatar shut down its Ras Laffan plant, which accounts for approximately 20% of global LNG supply.
As of February 27, U.S. natural gas production was reported at 113.6 billion cubic feet per day (bcf/day), a 6.4% increase year-over-year, while gas demand decreased to 77.6 bcf/day, down 17.4% year-over-year. The EIA has raised its forecast for U.S. dry natural gas production in 2026 to 109.97 bcf/day, contributing to bearish trends in gas prices. Inventory levels showed a larger-than-expected draw of 132 bcf, compared to market expectations of 124 bcf, indicating stable supply conditions despite the geopolitical concerns.
