Nat-Gas Prices Rise as US Weather Forecasts Cool
Summarize this article with:
AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Stocks Nat-Gas Prices Rise as US Weather Forecasts Cool April 16, 2026 — 05:49 pm EDT Written by Rich Asplund for Barchart-> May Nymex natural gas (NGK26) on Thursday closed up +0.037 (+1.42%).Nat-gas prices settled higher on Thursday as a mixed US weather forecast sparked short-covering in nat-gas futures.
The Commodity Weather Group said that forecasts shifted cooler across the eastern two-thirds of the US through April 20, but above-average temperatures are expected in the eastern US and the Upper Midwest from April 21-25. Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis. On Tuesday, nat-gas prices sank to a 17-month low due to above-normal spring temperatures that have reduced US nat-gas heating demand and expanded storage levels. Projections for higher US nat-gas production are negative for prices. Last Tuesday, the EIA raised its forecast for 2026 US dry nat-gas production to 109.59 bcf/day from a March estimate of 109.49 bcf/day. US nat-gas production is currently near a record high, with active US nat-gas rigs posting a 2.5-year high in late February.US (lower-48) dry gas production on Thursday was 110.7 bcf/day (+3.3% y/y), according to BNEF. Lower-48 state gas demand on Thursday was 70.0 bcf/day (-4.3% y/y), according to BNEF. Estimated LNG net flows to US LNG export terminals on Thursday were 19.9 bcf/day (unchanged w/w), according to BNEF.Nat-gas prices have some medium-term support on the outlook for tighter global LNG supplies. On March 19, Qatar reported "extensive damage" at the world's largest natural gas export plant at Ras Laffan Industrial City. Qatar said the attacks by Iran damaged 17% of Ras Laffan's LNG export capacity, a damage that will take three to five years to repair.
The Ras Laffan plant accounts for about 20% of global liquefied natural gas supply, and a reduction in its capacity could boost US nat-gas exports. Also, the closure of the Strait of Hormuz due to the war in Iran has sharply curtailed nat-gas supplies to Europe and Asia.As a negative factor for gas prices, the Edison Electric Institute reported Wednesday that US (lower-48) electricity output in the week ended April 11 fell -1.0% y/y to 72,672 GWh (gigawatt hours). However, US electricity output in the 52 weeks ending April 11 rose +1.76% y/y to 4,322,473 GWh.Thursday's weekly EIA report was neutral to bearish for nat-gas prices, as nat-gas inventories for the week ended April 10 rose by +59 bcf, right on expectations but well above the 5-year weekly average of +38 bcf. As of April 10, nat-gas inventories were up +6.7% y/y, and +5.8% above their 5-year seasonal average, signaling ample nat-gas supplies. As of April 14, gas storage in Europe was 30% full, compared to the 5-year seasonal average of 42% full for this time of year.Baker Hughes reported last Friday that the number of active US nat-gas drilling rigs in the week ending April 10 fell by -3 to 127, modestly below the 2.5-year high of 134 rigs set on February 27. In the past 17 months, the number of gas rigs has risen from the 4.75-year low of 94 rigs reported in September 2024. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart Is U.S.
Natural Gas Entering a New Era?
Is Natural Gas Heading Lower as the Shoulder Season Approaches?
Natural Gas Prices Just Hit $6.
How Much Higher Will They Go Here Amid Winter Storm Fern?
Our Top Technical Strategist Explains How to Invest in the 'Age of Electricity' The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Tags Stocks Barchart With headquarters in the heart of Chicago's financial district, Barchart has been an industry-leader since 1995 when we launched Barchart.com as one of the first websites for commodities and futures market data. Since then, we have evolved into a global financial technology leader providing market data and services to the global financial, media, and commodity industries. More articles by this source-> More Related Articles This data feed is not available at this time. Data is currently not available • Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.