Natural Gas Update April 2,2026

Overview

Natural Gas--NG is up 2.9 cents at $2.848
The NG and TTF gas futures are higher -- but are lagging behind the strong energy complex rally. NG's rally is muted as shoulder season weather demand is a weight. NG feedgas demand is a positive, especially as LNG global disruptions persist.

U.S. exports of LNG  rose to an all-time high in March as plants ran above nameplate capacity and new units started up, preliminary data from financial firm LSEG showed. Exports in March climbed to 11.7 million metric tons, up from 9.94 million tons in February, and surpassed the previous monthly record of 11.5 million tons in December, the data showed. And new production capacity is ramping up at Cheniere's Corpus Christi plant and at the Golden Pass facility. U.S. shipments to Asia rose to 1.99 million tons (=95.5 BCF)  in March, more than double the 970,000 tons sent in February, LSEG ship-tracking data showed. Europe remained the largest buyer of U.S. LNG last month, taking 7.49 million tons (=360 BCF), or about 64% of total March exports. That was slightly below the 7.66 million tons (=367 BCF) shipped in February.  (Reuters)

Today's EIA gas storage data is seen as a build of 22 BCF, as per the WSJ survey. But surveys from Bloomberg and Reuters are calling for a build of  34 to 36 BCF. This compares to last year's build of 30 BCF and the 5 year average for the period that is a draw of 4 BCF.

The near-term temperature outlook continues to look consistently mild through at least mid-April, as per Celsius Energy analysis. LSEG figures showed  NG demand forecasts seen on Wednesday for this week were  estimated at 107.8 BCF/d and 106.8 BCF/d for next week. These forecasts were down a total of 4.3 BCF/d versus those seen Monday.

The October January CSO options traded actively Wednesday on the CME. The -$1.00/-$0.75 call spread traded 4.1 cents 2,500 contracts worth. Furthermore, the October January -$1.50 call was sold against buying of the -$1.50 put at a cost of 0.2 and 0.3 cents. Against that, an equal amount of the October January futures spread was sold at -$1.50. 2,000 contracts of the October January -$2.00/-$1.75/-$1.50 put butterfly traded at a cost of 2.9 cents. Also in the October January CSO, 3,000 of the -$1.50/-$1.25/-$1.00 call butterfly traded at a cost of 3.7 cents. On Wednesday, the October January futures spread settled at -$1.561.

In the TTF options on the CME on Wednesday, the June  50/60/70 Euro call butterfly traded at a cost of 1.0 Euro to the buyer of the wings. There were 0.10 delta June TTF futures sales at Euro 48.50 against that. The June TTF settled at Euro 47.364 Wednesday; currently today the June TTF futures are printing Euro 50.480.

Technically the NG futures have negative momentum basis the DC chart. Support lies at 2.772-2.776. Resistance is seen at 2.944-2.949.

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