FX.co ★ US Natgas Drops Further

US natural gas futures slipped below $3.10 per MMBtu, extending their pullback from a one-month high, as a warmer spring forecast and record domestic output outweighed persistent supply risks linked to the conflict in the Middle East. The EIA reported a 38 billion cubic feet withdrawal from storage in the latest week, below market expectations of a 42 Bcf draw, indicating that heating demand is easing as the winter season winds down. Although the war involving Iran continues to disrupt shipments through the Strait of Hormuz and has shut down operations at the world’s largest LNG hub in Qatar, the impact on US prices has been muted. The United States already produces enough natural gas to cover domestic needs, and its LNG export terminals are operating near full capacity, limiting the scope for additional export-driven price pressure.