US natural gas markets edged lower over the week, despite below-forecast net storage injections and colder-than-normal weather across most of the country in recent days, amid conflicting demand indicators.
The front-month June contract price fell over the week to $2.75 per million British thermal units from $2.79/MMBtu on April 24.
However, the front-month June contract price rose by $0.08 over the week to $2.730 per million British thermal units, from $2.647/MMBtu on May 1, according to the US Energy Information Administration's Weekly Gas Storage Supplement released on Thursday.
Natural gas spot prices rose by $0.15/MMBtu to $2.75/MMBtu during the week ended May 6, according to the EIA, from $2.60/MMBtu the prior week.
On the demand side, cooler-than-normal temperatures across the country limited both heating and cooling demand, with total US natural gas demand dropping by 0.7 billion cubic feet per day, driven by a 1.2 Bcf per day decline in power sector consumption, according to LSEG data.
Additionally, LNG feedgas averaged 17.4 Bcf/d throughout the past week, down 7% from the prior week, EIA said, citing LSEG data. This comes amid planned maintenance across several major terminals.
Natural gas prices rose across most regional hubs, barring Waha, where prices declined $1.07/MMBtu over the past week, according to the EIA.
The net injection into storage for the week ended May 1 was 63 Bcf, down from 79 Bcf the prior week, bringing total gas inventories to 2,205 Bcf, according to EIA data. This week's figures were also below forecasts at 72 Bcf, prompting a market rally, according to data compiled by Investing.com.
During the same week last year, the EIA reported a net injection of 104 Bcf, with the five-year average for this period at 77 Bcf.
Total gas inventories at 2,205 Bcf are now 75 Bcf, or 4% above the corresponding period a year ago, and 139 Bcf, or 7%, higher than the five-year average for this period.
Nearly all regions reported a net injection of working gas for the week ended May 1, with the East injecting the most, up 29 Bcf from the prior week, with total inventories at 361 Bcf, which is just 1 Bcf, or 0.3% below its five-year average for this period.
The EIA reported that storage levels across the Pacific, Mountain and the South Central Non-salt regions were all above their respective five-year averages, while the rest were still at a deficit.
According to Pinebrooke Energy Advisors, this week's storage report marked the "tightest storage build" since early April, based on population-weighted temperatures, and 2024 and 2025 weekly changes.
Additionally, the US gas rig count dropped by one from 130 the previous week to 129 in the week ending May 8, according to data from Baker Hughes (BKR) released Friday. That compares with 108 gas rigs in operation a year earlier.
The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by two to 672 from 670 the previous week.
Weather forecasts had pointed to below-normal temperatures for early and mid-May, however, almost the whole of the country is now expected to see above-normal temperatures from May 15 to May 21, according to the National Weather Service, which could add to cooling demand.
A total of 30 liquefied natural gas-carrying vessels left US ports during the week, down by five, compared to 35 vessels last week, with a total capacity of 115 Bcf, down by 18 Bcf compared to the prior week.
In international markets, European TTF gas prices averaged $15.85/MMBtu for the week ended May 6, $0.44/MMBtu higher than the previous week.
The Japan-Korea Marker averaged $16.90/MMBtu, about $0.31/MMBtu higher than the prior week.