Commodities Buzz: EIA expects rising US output to weigh on Natural Gas prices

The US Energy Information Administration or EIA stated in a monthly update yesterday that the US marketed natural gas production averaged 120.2 Bcf/d in 1Q26, up 4% from 1Q25. EIA expects Natural Gas production to keep rising through 2027, with associated natural gas output increasing as higher crude oil prices support more crude oil production. Natural gas production growth this year is driven primarily by 6% growth both in the Permian and Haynesville regions. It also increased forecast of marketed natural gas production by 1% this year and by 2% in 2027 compared with last month?s forecast based on analysis that shows rising gas-to-oil ratios from many wells in the Permian region. Henry Hub spot price is expected to average $3.50 per mmbtu in 2026, down 4.4% compared to previous forecast.

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