UPDATE 1-US natural gas futures slide 2% as LNG export flows drop and Iran peace talks weigh
Adds latest prices
By Scott DiSavino
NEW YORK, May 6 (Reuters) - U.S. natural gas futures slid about 2% to a one-week low on Wednesday after news that the U.S. and Iran were closing in on an agreement to end the Iran war, and on a drop in flows to U.S. liquefied natural gas export plants during the normal spring maintenance season.
Oil futures CLc1, LCOc1 plunged over 10% earlier in the session on the Iran war news, which put pressure on the entire energy complex.
Front-month gas futures for June delivery NGc1 on the New York Mercantile Exchange fell 5.8 cents, or 2.1%, to settle at $2.73 per million British thermal units (mmBtu), their lowest close since April 29.
In the cash market, average prices at the Waha Hub in West Texas have remained in negative territory for a record 63 days in a row as pipeline constraints trap gas in the Permian region, the nation's biggest oil-producing shale basin.
SUPPLY AND DEMAND
Financial group LSEG said average gas output in the U.S. Lower 48 states has slid to 109.3 billion cubic feet per day (bcfd) so far in May, down from 109.5 bcfd in April and a monthly record high of 110.6 bcfd in December 2025.
Output has declined over the past couple of months due in part to low spot prices, which prompted energy firms like EQT EQT.N, the second-largest U.S. gas producer, to reduce production as they wait for prices to rise.
Analysts said mostly mild weather earlier this spring allowed energy firms to inject more gas into storage than usual. They added, however, that recent output declines coupled with cooler weather and higher demand likely reduced the inventory surplus to around 7% above normal during the week ended May 1, down from 8% above during the week ended April 24. EIA/GAS NGAS/POLL
Looking ahead, meteorologists forecast the weather will remain mostly near normal through May 21 with cooling demand overtaking heating demand for the first time this year.
LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 98.4 bcfd this week to 98.0 bcfd next week. The forecast for this week was higher than LSEG's outlook on Tuesday.
Average gas flows to the nine big U.S. LNG export plants fell to 17.3 bcfd so far in May, down from a monthly record of 18.8 bcfd in April.
|
Week ended May 1 Forecast |
Week ended April 24 Actual |
Year ago May 1 |
Five-year average (2021-2025) May 1 |
|
U.S. weekly natgas storage change (bcf): |
+74 |
+79 |
+104 |
+77 |
|
U.S. total natgas in storage (bcf): |
2,216 |
2,142 |
2,130 |
2,066 |
|
U.S. total storage versus 5-year average |
+7.3% |
+7.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Gas Benchmark Futures ($ per mmBtu) |
Current Day |
Prior Day |
This Month Last Year |
Prior Year Average 2025 |
Five-Year Average (2021-2025) |
Henry Hub NGc1 |
2.72 |
2.79 |
3.46 |
3.62 |
3.79 |
Title Transfer Facility (TTF) TRNLTTFMc1 |
14.14 |
16.06 |
11.68 |
11.94 |
18.51 |
Japan-Korea Marker (JKM) JKMc1 |
17.04 |
16.86 |
11.83 |
12.24 |
18.12 |
|
|
|
|
|
|
|
|
|
|
|
|
LSEG U.S. Global Forecast System (GFS) Heating, Cooling and Total Degree Days |
|
|
|
|
|
Two-Week Total Forecast |
Current Day |
Prior Day |
Prior Year |
10-Year Norm |
30-Year Norm |
U.S. GFS Heating Degree Days (HDD) |
63 |
71 |
55 |
81 |
75 |
U.S. GFS Cooling Degree Days (CDD) |
87 |
79 |
71 |
69 |
67 |
U.S. GFS Total Degree Days (TDD) |
150 |
150 |
126 |
150 |
143 |
|
|
|
|
|
|
LSEG U.S. Weekly GFS Supply and Demand Forecasts |
|
|
|
|
|
|
Prior Week |
Current Week |
Next Week |
This Week Last Year |
Five-Year (2021-2025) Average for Month |
U.S. Supply (bcfd) |
|
|
|
|
|
U.S. Lower 48 Dry Production |
108.2 |
109.3 |
110.1 |
105.1 |
100.1 |
U.S. Imports from Canada |
6.8 |
6.5 |
6.9 |
N/A |
7.3 |
U.S. LNG Imports |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Total U.S. Supply |
115.0 |
115.8 |
117.1 |
N/A |
107.4 |
|
|
|
|
|
|
U.S. Demand (bcfd) |
|
|
|
|
|
U.S. Exports to Canada |
2.1 |
2.7 |
2.7 |
N/A |
2.4 |
U.S. Exports to Mexico |
6.6 |
6.4 |
6.6 |
N/A |
6.5 |
U.S. LNG Export Feedgas |
18.2 |
17.0 |
17.3 |
14.7 |
12.9 |
U.S. Commercial |
6.7 |
6.4 |
5.6 |
5.9 |
5.9 |
U.S. Residential |
7.9 |
7.1 |
5.7 |
6.5 |
6.3 |
U.S. Power Plant |
31.7 |
28.7 |
30.6 |
31.2 |
30.6 |
U.S. Industrial |
22.4 |
22.6 |
22.1 |
22.7 |
22.0 |
U.S. Plant Fuel |
5.3 |
5.4 |
5.4 |
5.4 |
5.2 |
U.S. Pipe Distribution |
2.0 |
1.9 |
1.9 |
2.0 |
2.8 |
U.S. Vehicle Fuel |
0.1 |
0.1 |
0.1 |
0.1 |
0.2 |
Total U.S. Consumption |
76.2 |
72.2 |
71.4 |
73.8 |
73.0 |
Total U.S. Demand |
103.1 |
98.4 |
98.0 |
N/A |
94.8 |
|
|
|
|
|
|
N/A = Not Available |
|
|
|
|
|
|
|
|
|
|
|
U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam (fiscal year ending September 30) |
2026 Current Day % of Normal Forecast |
2026 Prior Day % of Normal Forecast |
2025 % of Normal Actual |
2024 % of Normal Actual |
2023 % of Normal Actual |
Apr-Sep |
89 |
89 |
76 |
74 |
83 |
Jan-Jul |
93 |
93 |
78 |
76 |
77 |
Oct-Sep |
98 |
98 |
80 |
77 |
76 |
|
|
|
|
|
|
U.S. weekly power generation percent by fuel - EIA |
|
|
|
|
|
|
Week ended May 8 |
Week ended May 1 |
2025 |
2024 |
2023 |
Wind |
16 |
12 |
11 |
11 |
10 |
Solar |
10 |
8 |
6 |
5 |
4 |
Hydro |
7 |
7 |
6 |
6 |
6 |
Other |
1 |
2 |
1 |
1 |
2 |
Petroleum |
0 |
0 |
0 |
0 |
0 |
Natural Gas |
32 |
39 |
40 |
42 |
41 |
Coal |
13 |
14 |
18 |
16 |
17 |
Nuclear |
20 |
19 |
18 |
19 |
19 |
|
|
|
|
|
|
SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu) |
|
|
|
|
|
Hub |
Current Day |
Prior Day |
This Month Last Year |
Prior Year Average 2025 |
Five-Year Average (2021-2025) |
Henry Hub NG-W-HH-SNL |
2.83 |
2.67 |
3.12 |
3.52 |
3.72 |
Transco Z6 New York NG-CG-NY-SNL |
1.95 |
1.99 |
2.35 |
3.53 |
3.56 |
PG&E Citygate NG-CG-PGE-SNL |
1.54 |
1.36 |
2.89 |
3.42 |
5.47 |
Eastern Gas (formerly Dominion South) NG-PCN-APP-SNL |
1.86 |
1.83 |
2.25 |
2.79 |
2.96 |
Chicago Citygate NG-CG-CH-SNL |
2.60 |
2.37 |
2.86 |
3.23 |
3.60 |
Algonquin Citygate NG-CG-BS-SNL |
2.17 |
2.05 |
2.82 |
6.08 |
5.04 |
SoCal Citygate NG-SCL-CGT-SNL |
2.40 |
1.95 |
2.98 |
3.60 |
5.71 |
Waha Hub NG-WAH-WTX-SNL |
-3.92 |
-4.16 |
1.34 |
1.15 |
2.88 |
AECO NG-ASH-ALB-SNL |
1.16 |
0.99 |
1.32 |
1.13 |
2.13 |
|
|
|
|
|
|
Intercontinental Exchange (ICE) U.S. Power Next-Day Prices ($ per megawatt-hour) |
|
|
|
|
|
Hub |
Current Day |
Prior Day |
This Month Last Year |
Prior Year Average 2025 |
Five-Year Average (2021-2025) |
New England E-NEPLMHP-IDX |
51.09 |
40.31 |
77.61 |
61.79 |
|
PJM West E-PJWHRTP-IX |
72.17 |
43.04 |
60.23 |
54.47 |
|
Mid-Columbia (Mid C) W-MIDCP-IDX |
25.35 |
39.90 |
44.81 |
68.96 |
|
Palo Verde W-PVP-IDX |
17.50 |
29.10 |
34.82 |
59.94 |
|
South Path-15 (SP-15) W-SP15-IDX |
9.28 |
17.36 |
28.44 |
53.02 |