Will Persistent Weak Demand Keep Prices Under Pressure?

Natural gas futures have now fallen for ten straight sessions, weighed down by mild spring temperatures and sluggish demand typical of the shoulder season.

Production remains stubbornly high, with Lower 48 dry gas output at 104.4 Bcf/day on Friday, up 3.8% year-over-year, according to BNEF. In contrast, Lower 48 gas demand was only 66.8 Bcf/day, down 7% from a year ago.

LNG exports were also lighter, with flows at 15.3 Bcf/day, a 3% week-over-week decline. These supply-demand imbalances continue to erode price support.

What Does the Latest Storage Data Signal for Prices?

The EIA reported an 88 Bcf storage build for the week ending April 18, exceeding expectations of 75 Bcf and topping the five-year average build of 58 Bcf. Total working gas in storage now stands at 1,934 Bcf, 44 Bcf below the five-year average but still within the historical range.

Despite a tighter year-over-year supply picture—storage levels are down 20.2% versus last year—the higher-than-expected injection and ongoing mild weather are keeping pressure on futures.

How Are Traders Reacting to Technical Levels?