US Natural Gas Prices Decline Amid Weak Demand and Pipeline Constraints
Why are gas prices down today, and will Waha Hub rates rise or decline in near future? US natgas futures, Henry Hub futures, European TTF futures and Japan-Korea Marker
The Economic TimesImage: The Economic Times
US natural gas futures dropped nearly 3% due to weaker demand forecasts and lower LNG export flows, settling at $2.788 per mmBtu. Waha Hub prices remain negative for a record 62 consecutive days, pressured by pipeline constraints in the Permian Basin. Analysts predict mixed signals for future pricing.
- 01US natural gas futures fell nearly 3% amid lower demand expectations.
- 02Waha Hub prices have been negative for a record 62 days due to pipeline constraints.
- 03Storage levels remain above the five-year average, impacting price pressures.
- 04Production cuts may support prices if demand increases in the summer.
- 05Global gas prices remain significantly higher than US prices.
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US natural gas futures experienced a nearly 3% drop, settling at $2.788 per mmBtu, driven by weaker demand forecasts and lower LNG export flows. This decline follows a six-day price rally. The average gas flow to nine major US LNG plants decreased to 17.3 billion cubic feet per day (bcfd) in May from a record 18.8 bcfd in April due to spring maintenance. Waha Hub prices have remained negative for a record 62 consecutive days, averaging negative $2.22 per mmBtu in 2026 so far, primarily due to pipeline constraints in the Permian Basin. Despite a storage surplus that is slowly declining, analysts expect mixed signals for future pricing as production cuts and seasonal cooling demand may support prices later in the summer. Meanwhile, global gas benchmarks remain significantly higher, with Henry Hub futures around $2.85, European TTF futures at $16.57, and the Japan-Korea Marker at $16.86 per mmBtu.
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The decline in natural gas prices may lead to lower energy costs for consumers, but ongoing pipeline constraints could hinder price recovery.
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