May Nymex natural gas futures fell by 3.48 percent to close at $1.869 on Friday, reaching a one-and-a-half-year low as domestic inventories continued to climb. As reported by Detik Finance, unseasonably warm US spring temperatures have suppressed heating demand, further bloating existing stockpiles.
Energy Information Administration (EIA) data through April 17 showed that natural gas inventories are currently 7.1 percent above the five-year seasonal average. This surplus signals an abundant supply environment that is weighing heavily on market valuations.
Production levels remain near record highs, with active gas rigs hitting a 2.5-year peak in late February. According to BNEF, US lower-48 dry gas production reached 110.4 billion cubic feet (bcf) per day on Friday, representing a 3.7 percent increase compared to the previous year.
The EIA recently adjusted its long-term outlook to reflect this growing output. On April 7, the agency increased its 2026 US dry natural gas production forecast to 109.59 bcf per day, up from the 109.49 bcf per day estimated in March.
Despite the current price slump, geopolitical tensions and infrastructure damage provide medium-term support for global supply tightening. Officials in Qatar recently addressed significant disruptions at the world’s largest natural gas export facility following regional conflict.
“extensive damage” reported Qatar, regarding the world’s largest natural gas export plant at Ras Laffan Industrial City on March 19.
The government noted that the site represents approximately 20 percent of the global liquefied natural gas (LNG) supply. The loss of capacity is expected to be prolonged due to the severity of the incident.
“17% of Ras Laffan’s LNG export capacity, a damage that will take three to five years to repair” said Qatar, following attacks by Iran.
Additional market support stems from the ongoing closure of the Strait of Hormuz. This blockade has restricted supplies to Europe and Asia, potentially increasing international reliance on US LNG exports to fill the resulting energy deficit.
Domestic demand indicators also showed some upward movement recently. The Edison Electric Institute reported that US electricity output rose 6.5 percent year-over-year for the week ended April 18, totaling 77,299 gigawatt hours.