UBS Cuts Natural Gas Forecasts Amid Resilient US Supply

UBS has lowered its natural gas price forecasts due to resilient U.S. supply and weaker exports, which are keeping the market well supplied despite lower prices.

The bank cut its December 2026, March 2027, and June 2027 forecasts by $0.20 per million British thermal units (mmbtu), citing inventory builds that are running ahead of the seasonal norm.

U.S. natural gas inventories stood at 3.15 trillion cubic feet in August 2026, about 321 billion cubic feet, or 7.8%, above the five-year average, according to the latest storage report.

This suggests that supply growth outpaced demand growth in recent months, said UBS strategist Giovanni Staunovo.