US natural gas futures fell below $3.10 per MMBtu, extending their retreat from a one-month high, as a warmer spring outlook and record domestic production offset ongoing supply risks stemming from the Middle East conflict. The EIA reported a 38 billion cubic feet storage withdrawal in the latest weekly data, smaller than the 42 Bcf draw expected, signaling that heating demand is beginning to fade as the winter season comes to an end. While the Iran war continues to disrupt shipments through the Strait of Hormuz and has halted operations at the world’s largest LNG hub in Qatar, the impact on US prices has remained limited. This is because the country already produces sufficient natural gas to meet domestic demand, with LNG export terminals operating close to their maximum capacity.
