NEW YORK, April 6, 2026, 15:09 EDT
Natural gas futures in the U.S. ticked up Monday, with traders factoring in a burst of lingering heating demand. The May Henry Hub contract, now the most active, hovered near $2.82 per million British thermal units—roughly a 0.7% gain based on delayed CME figures.
This shift carries weight, with gas remaining a core piece of both the U.S. power grid and its export business. The Energy Information Administration estimates natural gas will account for roughly 40% of domestic electricity generation this year. LNG exports are forecast to average 16.7 billion cubic feet per day—a level that keeps U.S. prices tied closely to swings in weather and global demand.
Futures snapped a four-day losing streak as a near-term cold snap sweeps through the Ohio Valley and pushes east, according to Dennis Kissler, senior vice president for trading at BOK Financial Securities.
Even so, the market heads into spring with some breathing room. The EIA reported working gas in storage reached 1,865 billion cubic feet for the week ending March 27, a 36 billion cubic foot increase from the week before.
One factor keeping traders cautious about predicting a sustained recovery: the EIA slashed its 2026 Henry Hub price outlook this month to roughly $3.80 per mmBtu, marking a 13% drop from the prior month’s forecast. The agency noted that while less LNG is moving through the Strait of Hormuz, European and Asian gas prices are seeing sharper gains than those in the U.S., where export terminals are already close to full tilt.
Overseas risks continue to cloud the contract. On Monday, Reuters reported that both Washington and Tehran had been handed a ceasefire framework, but Iran refused to immediately reopen the Strait of Hormuz. “The situation remains fluid,” said Again Capital’s John Kilduff. SEB Research’s Ole Hvalbye pointed out, “the most important headline this weekend has been that some ships passed through the strait.” Reuters
This is key for U.S. gas: export appetite isn’t slowing. Reuters flagged a record surge in U.S. LNG exports last month, reaching 11.7 million metric tons in March. Europe pulled in 64% of those cargoes, riding on boosted output from projects linked to Cheniere Energy and a QatarEnergy-ExxonMobil partnership.
Beyond U.S. borders, the gap remains pronounced. On Monday, Europe’s Dutch TTF benchmark hovered at roughly 50.08 euros per megawatt hour. UK gas was quoted close to 126.56 pence a therm. Reuters noted last week that UK benchmark prices had jumped about 74% since late February, compared with a 67% climb for mainland Europe, after the Iran conflict rattled LNG shipments.
Still, any bullish momentum could fall apart fast. U.S. drillers put more gas rigs to work last week, and the EIA projects daily gas output will reach 109.5 billion cubic feet by 2026, according to Reuters on April 2. That kind of supply overhang threatens to keep a lid on Henry Hub prices—especially if the cold snap fizzles and storage builds continue.
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