US Supply Glut Meets Global Geopolitical Risk in Natural Gas Market
Natural gas futures have been consolidating near range lows due to conflicting supply and demand dynamics.
The market is caught between a well-supplied domestic backdrop, with US dry gas production averaging 111.5 billion cubic feet per day in August, and a tightening global picture driven by the Strait of Hormuz disruptions that have pushed European gas prices above 65 euros per MWh.
Despite these opposing forces, the EIA's August Short Term Energy Outlook lowered its 2026 Henry Hub price forecast to $3.44 per MMBtu, citing looser domestic fundamentals.