US natgas futures jump 4% as cooler weather looms, Iran war supply concerns

Reuters03-09
US natgas futures jump 4% as cooler weather looms, Iran war supply concerns

US natural gas futures rise due to cooler weather forecasts

Global energy prices soar amid US-Iran conflict

Waha Hub prices remain negative due to pipeline constraints

By Scott DiSavino

NEW YORK, March 9 (Reuters) - U.S. natural gas futures climbed about 4% to a one-month high on Monday on forecasts for cooler weather and more demand next week than previously expected and on soaring global energy prices and supply concerns as the U.S.-Iran war escalated.

Front-month gas futures for April delivery NGc1 on the New York Mercantile Exchange rose 13.5 cents, or 4.2%, to $3.321 per million British thermal units (mmBtu), putting the contract on track for its highest close since February 6.

Even though the shutdown of liquefied natural gas $(LNG)$ export production in Qatar removed about 20% of global LNG supplies, prices in the U.S. have reacted, but not by as much as elsewhere in the world because America produces all the gas it needs and was already exporting all the LNG it could. So, no matter how high global gas prices go, the U.S. cannot export much more gas.

Since the U.S. and Israel bombed Iran on February 28, U.S. gas has gained about 16% this week versus 89% in Europe TRNLTTFMc1 and 46% in Asia JKMc1.

SUPPLY AND DEMAND

Average gas output in the U.S. Lower 48 states rose to 110.0 billion cubic feet per day (bcfd) so far in March, up from 109.2 bcfd in February, according to data from financial firm LSEG. That compares with a monthly record high of 110.6 bcfd in December 2025.

Energy analysts said mostly mild weather in recent weeks has allowed energy firms to leave more gas in storage than usual for this time of year, which should keep stockpiles about 2% below normal for the week ended March 6, the same as during the week ended February 27. EIA/GAS NGAS/POLL

Meteorologists forecast weather across the country will remain mostly warmer than normal through March 24, which should keep heating demand and the amount of gas energy firms need to pull from storage low in coming weeks. The weather, however, is expected to be colder next week than this week.

LSEG projected average gas demand in the Lower 48 states, including exports, would jump from 110.9 bcfd this week to 126.1 bcfd next week. The forecast for this week was lower than LSEG's outlook on Friday, while its forecast for next week was higher.

Average gas flows to the nine big U.S. LNG export plants slid to 18.1 bcfd so far in March, down from a record 18.7 bcfd in February.

In Texas, Freeport LNG's 2.4-bcfd export plant shut on Sunday due to an issue with feedgas to the facility.

In the Middle East, QatarEnergy halted LNG production and declared a force majeure due to the Iran war, causing global gas prices to soar. Qatar is one of the biggest LNG producers in the world along with the U.S. and Australia.

Gas soared to a three-year high of around $21 per mmBtu at the Dutch Title Transfer Facility (TTF) TRNLTTFMc1 benchmark in Europe and close to a two-year high of around $16 at the Japan-Korea Marker (JKM) JKMc1 benchmark in Asia. NG/EU

Week ended Mar 6 Forecast

Week ended Feb 27 Actual

Year ago Mar 6

Five-year average (2021-2025) Mar 6

U.S. weekly natgas storage change (bcf):

-53

-132

-64

-64

U.S. total natgas in storage (bcf):

1,833

1,886

1,707

1,865

U.S. total storage versus 5-year average

-1.7%

-2.2%

Global Gas Benchmark Futures ($ per mmBtu)

Current Day

Prior Day

This Month Last Year

Prior Year Average 2025

Five-Year Average (2021-2025)

Henry Hub NGc1

3.37

3.19

4.14

3.62

3.79

Title Transfer Facility (TTF) TRNLTTFMc1

21.29

18.07

13.21

11.94

18.51

Japan-Korea Marker (JKM) JKMc1

15.71

15.50

13.50

12.24

18.12

LSEG U.S. Global Forecast System $(GFS)$ Heating, Cooling and Total Degree Days

Two-Week Total Forecast

Current Day

Prior Day

Prior Year

10-Year Norm

30-Year Norm

U.S. GFS Heating Degree Days (HDD)

258

231

229

283

291

U.S. GFS Cooling Degree Days (CDD)

30

26

11

15

10

U.S. GFS Total Degree Days (TDD)

288

257

240

298

301

LSEG U.S. Weekly GFS Supply and Demand Forecasts

Prior Week

Current Week

Next Week

This Week Last Year

Five-Year (2021-2025) Average for Month

U.S. Supply (bcfd)

U.S. Lower 48 Dry Production

109.8

110.3

110.2

106.1

99.9

U.S. Imports from Canada

8.3

7.7

8.7

N/A

8.0

U.S. LNG Imports

0.1

0.0

0.0

0.1

0.1

Total U.S. Supply

118.1

118.0

118.9

N/A

108.0

U.S. Demand (bcfd)

U.S. Exports to Canada

3.7

4.2

4.0

N/A

3.4

U.S. Exports to Mexico

6.8

6.3

6.6

N/A

5.8

U.S. LNG Export Feedgas

18.2

18.6

18.5

15.5

13.2

U.S. Commercial

12.5

9.6

13.6

10.9

12.1

U.S. Residential

18.9

13.4

20.5

16.6

18.3

U.S. Power Plant

31.8

27.9

29.9

30.4

31.8

U.S. Industrial

24.1

23.2

24.9

23.7

24.5

U.S. Plant Fuel

5.4

5.5

5.4

5.4

5.4

U.S. Pipe Distribution

2.5

2.2

2.6

2.5

4.0

U.S. Vehicle Fuel

0.1

0.1

0.1

0.1

0.2

Total U.S. Consumption

95.4

81.8

97.0

89.6

96.3

Total U.S. Demand

124.1

110.9

126.1

N/A

118.7

N/A = Not Available

U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam (fiscal year ending September 30)

2026 Current Day % of Normal Forecast

2026 Prior Day % of Normal Forecast

2025 % of Normal Actual

2024

% of Normal Actual

2023

% of Normal Actual

Apr-Sep

98

96

76

74

83

Jan-Jul

98

95

78

76

77

Oct-Sep

102

99

80

77

76

U.S. weekly power generation percent by fuel - EIA

Week ended Mar 13

Week ended Mar 6

2025

2024

2023

Wind

18

13

11

11

10

Solar

6

7

6

5

4

Hydro

6

7

6

6

6

Other

1

1

1

1

2

Petroleum

0

0

0

0

0

Natural Gas

38

38

40

42

41

Coal

15

15

18

16

17

Nuclear

19

19

18

19

19

SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)

Hub

Current Day

Prior Day

This Month Last Year

Prior Year Average 2025

Five-Year Average (2021-2025)

Henry Hub NG-W-HH-SNL

3.10

2.90

4.13

3.52

3.72

Transco Z6 New York NG-CG-NY-SNL

2.35

2.35

3.40

3.53

3.56

PG&E Citygate NG-CG-PGE-SNL

1.59

1.58

3.52

3.42

5.47

Eastern Gas (old Dominion South) NG-PCN-APP-SNL

2.15

2.24

3.29

2.79

2.96

Chicago Citygate NG-CG-CH-SNL

2.59

2.52

3.53

3.23

3.60

Algonquin Citygate NG-CG-BS-SNL

2.99

4.75

3.74

6.08

5.04

SoCal Citygate NG-SCL-CGT-SNL

2.00

2.07

3.53

3.60

5.71

Waha Hub NG-WAH-WTX-SNL

-2.23

-1.82

0.78

1.15

2.88

AECO NG-ASH-ALB-SNL

1.26

1.24

1.47

1.13

2.13

ICE U.S. Power Next-Day Prices ($ per megawatt-hour)

Hub

Current Day

Prior Day

This Month Last Year

Prior Year Average 2025

Five-Year Average (2021-2025)

New England E-NEPLMHP-IDX

69.00

69.00

50.19

77.61

61.79

PJM West E-PJWHRTP-IX

44.24

45.23

48.35

60.23

54.47

Mid C W-MIDCP-IDX

6.23

4.28

34.51

44.81

68.96

Palo Verde W-PVP-IDX

7.73

3.45

23.31

34.82

59.94

SP-15 W-SP15-IDX

7.17

2.09

16.63

28.44

53.02

(Reporting by Scott DiSavino, Editing by Nick Zieminski)

((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net/))

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment