US Natural Gas Market Remains Well Supplied Despite Regional Cooling Demand
The U.S. natural gas market remains well supplied as it heads into the fall shoulder season, thanks to strong production supporting growing global demand.
A heat dome across the South is causing strong regional cooling demand and slowing storage injections, but this has had a muted effect on total demand and Henry Hub prices.
The Energy Information Administration's August Short-Term Energy Outlook lowered its 2026 Henry Hub spot price forecast by more than 6% from July to $3.44 per MMBtu, with the annual spot price forecast falling over 20% since February.
In the global market, tightening supply-demand balances are in stark contrast to the bearish domestic picture, with U.S. LNG feedgas demand temporarily softened due to export-terminal maintenance at Freeport LNG, but expected to conclude by late August and reconnect with international markets where European and Asian prices remain above Henry Hub.