U.S. natural gas slips to $2.61 as oversupply continues to weigh on the market
📉 Front-month Henry Hub futures are pressing against the $2.61–$2.62/MMBtu support zone, showing that selling pressure has not eased after the sharp decline seen over the past several weeks.
🌡️ The main driver remains a clear oversupply backdrop, with Lower 48 gas production holding around 110–111 Bcf/d while warmer-than-usual spring weather keeps heating demand weak and cooling demand has not yet picked up enough.
🛢️ Storage continues to build faster than expected and remains above the five-year average, while LNG feedgas stays elevated but still is not enough to absorb excess domestic supply, keeping the short-term balance tilted toward supply.
📊 If the $2.62 level breaks decisively, the market could extend its decline toward $2.39 and then $2.25, while the latest EIA storage report will be the key signal for confirming whether this bearish trend still has room to continue.