Natural Gas near one-week low despite positive outlook as US output is set to flatten

Natural Gas futures fell yesterday as some profit booking emerged in the commodity following recent gains. The counter fell 2.80%, sliding further from a seven-week high even as price outlook remained steady for the near term. The EIA?s latest Short-Term Energy Outlook (STEO) expects the Henry Hub natural gas spot price to average around $3.00 per mmbtu in Q3 2025, supported by high inventories and strong production. In August, inventories ended 6% above the five-year average, contributing to the lower-than-expected price of $2.91/mmbtu. Reduced demand from the electric power sector also weighed on prices this summer, it noted. However, the STEO forecasts a gradual price increase this winter, driven by faster-than-normal inventory withdrawals and rising LNG exports, while US production flattens. This could cap downside in the commodity as it lingers around a one-week low near $3 per mmbtu right now. MCX Natural Gas futures are trading at Rs 267.10 per mmbtu, down 0.22% on the day amid an overall sideways price action.

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