Natural gas futures for June delivery rallied 4.53 percent to close at $2.77 per million British thermal units on Thursday as reported by Detik Finance. The price surge followed federal data showing a smaller-than-anticipated increase in domestic storage levels and weather forecasts predicting a cold snap in the eastern United States.
Government data from the Energy Information Administration (EIA) indicated that natural gas inventories grew by 79 billion cubic feet (bcf) for the week ending April 24. This figure fell short of market expectations, which had projected a build of approximately 83 bcf, leading to an immediate tightening of the market sentiment.
Demand expectations are further supported by the Commodity Weather Group, which reported on Thursday that temperatures across the eastern half of the country are likely to remain below average through May 4. This weather pattern typically increases the use of gas-fired heating, counteracting recent price drops that hit an 18-month low just last Friday.
Supply dynamics remain a concern for the long term as the EIA recently adjusted its 2026 dry natural gas production forecast. On April 7, the agency raised its estimate to 109.59 bcf per day, up from the 109.49 bcf per day projected in March, as active rig counts reached a 2.5-year high earlier this year.
Geopolitical tensions in the Middle East have also provided medium-term price support. The continued closure of the Strait of Hormuz has restricted global supplies, and Qatar recently addressed the impact of regional conflict on its energy infrastructure.
“extensive damage” reported Qatar, regarding the world’s largest natural gas export plant at Ras Laffan Industrial City.
The statement from Qatari officials on March 19 detailed that attacks by Iran had severely compromised the facility’s output. Recovery for the plant, which represents about 20 percent of the global liquefied natural gas (LNG) supply, is expected to take several years.
“extensive damage” at the world’s largest natural gas export plant at Ras Laffan Industrial City reported Qatar.
Recent data from BNEF shows that lower-48 dry gas production stood at 110.5 bcf per day on Thursday, a 3.2 percent increase year-over-year. Meanwhile, domestic gas demand rose by 9.6 percent over the same period, reaching 74.7 bcf per day despite a slight weekly dip in LNG export terminal flows.
