Natural Gas Update April 6,2026

Overview

Natural Gas--NG is up 5.0 cents at 2.850
NG futures are higher now after falling overnight to the lowest spot futures price since August 27,2025. Today's production is down slightly, while today's demand is up some and LNG feedgas demand is firm. Yet, the tone we see from analysts remains a negative one as they focus on the weak demand period and still overall strong US natural gas production --even as LNG feedgas volume continues to rise--however slowly.

US Lower 48 production is at 111.7 BCF/d today, down 0.6 BCF/d overnight, while US Lower 48 states demand is up 1.3 BCF/d overnight, but is down 4.9 BCF/d compared with last week's levels. Today's strength is led by stronger residential/commercial demand as areas of the Northeast are colder today. (Market News)

Over the past two weeks, the near-term temperature outlook has been quite bearish with unseasonably mild temperatures, as per Celsius Energy commentary. But they caution to watch coal to gas switching this spring. Another analyst writes:" The global (LNG) supply disruptions from the war aren’t doing enough to offset what’s happening domestically."

Celsius Energy sees US natural gas inventories having risen over 1900 BCF as of Friday. They added that that is 11 days sooner than the 5 year average (April 14) & 13 days earlier than last year (April 16). Warmer weather forecasts over the upcoming 2 week may put further pressure on Henry Hub until full summer heat triggers cooling demand, as per one other commentary.

This past Thursday saw Golden Pass' LNG facility take in a record amount of gas as it gets set to send out its first cargoes in the coming weeks. Feedgas flows to the facility hit a new record Thursday at 0.43 BCF/d. For Train 1 to fully come online, feedgas demand will be roughly double this amount. On Thursday, Reuters reported that Italy will receive a cargo of LNG from QatarEnergy/ExxonMobil’s Golden Pass facility in mid-June.

CFTC data seen Friday showed money managers raised their net short total in NG futures/options in the week ended Tuesday March 31. They added 13,492 contracts to bring their net short total to 68,022 contracts. This was mostly a result of long liquidation.

Technically NG spot futures tested support at 2.772-2.775 overnight with a low of 2.769. below that support lies at 2.721-2.724. Resistance comes in at 2.943-2.944. Momentum basis the DC chart for NG futures is getting oversold. 

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This article and its contents are provided for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any commodity, futures contract, option contract, or other transaction. Although any statements of fact have been obtained from and are based on sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed.

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