Natural Gas tests two-week low as EIA expects widening surplus in US markets next year

Natural Gas futures succumbed to sustained selling pressure yesterday and tested around two-week low under $2.80 per mmbtu as markets eyed elevated production outlook. Working natural gas in storage in the United States increased by 40 billion cubic feet (Bcf) in the week ending September 4, compared with the previous week, reaching 3,254 Bcf, the Energy Information Administration (EIA) revealed on Thursday. Stocks decreased by 79 Bfc annually, while being 148 Bcf above the five-year average of 3,106 Bcf. The agency confirmed that the total working gas is within the five-year historical average. EIA had separately noted that US natural gas supply and demand are expected to reach record highs in 2026 and 2027. Dry natural gas production is projected to increase from a record 107.6 billion cubic feet per day (bcfd) in 2025 to 111.7 bcfd in 2026 and 115.9 bcfd in 2027. Meanwhile, domestic gas consumption is forecast to rise from a record 91.9 bcfd in 2025 to 92.2 bcfd in 2026 and 94.3 bcfd in 2027. The outlook for next year showed widening surplus in US gas market, keeping the commodity under check while energy market was otherwise in a highly bullish mode following a sharp spike in crude oil prices. Natural Gas futures are currently quoting around $2.82 per mmbtu, down marginally on the day.

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