US Natural Gas Falls on Warmer Outlook and Growing Storage Surplus

US natural gas futures fell on warmer forecasts and expectations of increasing storage levels. According to Eli Rubin, senior energy analyst at EBW Analytics Group, domestic stockpiles will rise to a 155 bcf surplus by April 16.

The May delivery contract settled -13.8c, or -4.6%, to $2.887/mmbtu on Nymex. The October-January spread has widened to -$1.689/mmbtu from -$1.222/mmbtu before the start of the war in the Middle East.

High production levels continue to push down October prices, while geopolitical risk is boosting the contract for delivery in January. This is when the northeastern US imports liquefied natural gas to supplement its scarce pipeline capacity during cold weather.