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US Natural Gas Prices Continue Weekly Decline on Lower Demand, Inventory Build

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-- US natural gas markets eased over the week, as softer demand and rising stockpiles offset weather-driven volatility and a bullish storage report.

The front-month June contract price fell over the week to $2.789 per million British thermal units, from $2.861/MMBtu on April 24.

For the week ended April 29, the May 2026 Nymex contract was down $0.05 at $2.559/MMBtu, compared with $2.61/MMBtu the prior week, the Energy Information Administration's Weekly Gas Storage Supplement said.

Natural gas spot prices fell by $0.16/MMBtu to $2.60/MMBtu during the week ended April 29, according to the EIA, from $2.76/MMBtu last week.

This was attributed to a 2% decline, or 1.2 billion cubic feet per day, in total US natural gas demand compared with the prior week, with a 12% decline in residential and commercial demand during the period.

The EIA noted that the Henry Hub price remained the highest recorded price across all major pricing hubs in the US during the week.

The net injection into storage for the week ended April 24 was 79 Bcf, down from 103 Bcf the prior week, bringing total gas inventories to 2,142 Bcf, according to EIA data.

During the same week last year, the EIA reported a net injection of 105 Bcf, with the five-year average for this period at 63 Bcf. This week's figures were below forecasts at 83 Bcf, prompting a rally in markets, according to data compiled by Investing.com.

Total gas inventories at 2,142 Bcf are now 116 Bcf, or 6%, above the corresponding period a year ago, and 153 Bcf, or 8%, higher than the five-year average for this period.

All regions reported a net injection of working gas during the week ended April 24, with South Central reporting the highest at 26 Bcf, bringing its total inventories to 905 Bcf. Balances at South Central are now 18 Bcf above the five-year average.

Weather forecasts have remained bullish in recent weeks, with eastern parts of the US expected to see below-normal temperatures from May 08 to May 17, according to the National Weather Service.

However, analysts at Pinebrook Energy Advisors believe this cold pattern over the coming weeks "will have less of an impact on natural gas demand for heating" as normal temperatures begin to climb as the calendar progresses through the new month.

A total of 35 liquefied natural gas-carrying vessels left US ports during the week, the same as the previous week, with a total capacity of 133 Bcf, down by 1 Bcf compared to the prior week.

Meanwhile, the US gas rig count increased by one from 129 the previous week to 130 in the week ending May 1, according to data from Baker Hughes (BKR) released Friday. That compares with 108 gas rigs in operation in the US a year earlier.

The consolidated North American oil and gas rig count, a key early indicator of future production levels, dropped by four to 670 from 674 the previous week.

In international markets, European TTF gas prices averaged $15.41/MMBtu for the week ended April 29, $1.14/MMBtu higher than the previous week.

The Japan-Korea Marker averaged $16.59/MMBtu, about $0.93/MMBtu higher than the prior week.

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