Global Tightness Meets US Supply Glut in Natural Gas Market
Natural gas futures are consolidating near range lows due to a supply glut in the US and geopolitical risks globally.
The market is currently caught between ample domestic supply, with US dry gas production at an average of 111.5 billion cubic feet per day so far in August, and global tightness driven by disruptions in LNG vessel traffic through the Strait of Hormuz.
Despite this global tightness, the EIA's August Short Term Energy Outlook lowered its 2026 Henry Hub price forecast to $3.44 per MMBtu, down from $3.67 in July and more than 20% below the February 2026 estimate of $4.31.