US Natgas Prices Fall from 26-Month High
US natural gas futures fell below $4.4/MMBtu, retreating from a 26-month high of $4.5 on March 10, as rising output and forecasts for milder weather outweighed increased demand and record LNG export flows. Gas production in the Lower 48 states rose to an average of 105.8 bcfd so far in March, up from February’s record 105.1 bcfd. Meanwhile, the EIA’s latest forecast predicts US natural gas inventories will fall below 1.7 trillion cubic feet by the end of March—10% below the five-year average. This tighter supply prompted the EIA to raise its 2025 Henry Hub price forecast to $4.20/MMBtu, an 11% increase, with prices expected to reach $4.50/MMBtu in 2026. Meanwhile, trade tensions flared as Trump announced plans to double tariffs on Canadian steel and aluminum to 50% in response to Ontario’s 25% electricity surcharge. However, after Ontario paused the surcharge, the White House clarified that only the original 25% tariff will take effect.