31.03.202614:07:45UTC+00US Natgas Prices Rebound on Tuesday

US natural gas futures rose to $2.95 per MMBtu on Tuesday, rebounding from a 4.6% decline in the previous session and posting an advance of roughly 3% for March. The move was supported by strong LNG feedgas demand, amid concerns over supply disruptions linked to tensions in the Strait of Hormuz.

Looking ahead, however, demand is expected to soften as warmer-than-normal weather is forecast across the eastern US. Above-average temperatures are projected from late March into early April, and again around mid-month, which should curb heating needs and reinforce expectations of rebuilding inventories. While the EIA reported a larger-than-usual storage withdrawal last week, it is widely viewed as the final draw of the winter season. Stockpiles are now expected to move from a slight surplus in mid-March to a more pronounced surplus by mid-April.

At the same time, US gasoline prices climbed above $4 per gallon for the first time since August 2022, underscoring the impact of the escalating conflict in the Middle East. Prices have risen by more than $1 per gallon since the onset of the war.