US gas prices sink to seven-month low after storage build exceeds forecast

U.S. natural gas futures fell to a fresh seven-month low on Wednesday, pressured by a slightly larger-than-expected storage build and forecasts of milder weather and lower demand next week.

The U.S. Energy Information Administration (EIA) reported a 50 billion cubic feet (bcf) injection into storage for the week ended April 3, exceeding analysts’ expectations of a 46 bcf build. The increase compares with a 53 bcf rise in the same week last year and a five-year average build of 13 bcf.

Front-month May gas futures on the New York Mercantile Exchange slipped 0.5% to $2.711 per mmBtu, on track for their lowest close since August 25, despite a recent dip in output and a sharp rise in oil prices.


In the spot market, prices at the Waha Hub in West Texas remained negative for a record 44 consecutive days due to persistent pipeline constraints that continue to trap gas in the Permian Basin.

So far in 2026, Waha prices have averaged negative $1.37 per mmBtu, compared with positive averages in previous years, underscoring ongoing infrastructure bottlenecks in the region.

On the supply side, gas output in the Lower 48 states averaged 111.1 bcfd in April, up from 110.4 bcfd in March. However, daily output is expected to dip to a two-week low due to declines in Wyoming and Texas.

Weather forecasts indicate above-normal temperatures through April 24, limiting both heating and cooling demand. As a result, LSEG expects total U.S. gas demand, including exports, to fall from 108.1 bcfd this week to 100.1 bcfd next week.

Meanwhile, LNG export flows have risen to 18.9 bcfd so far in April, slightly above March levels and near record highs, providing some support to overall demand.