Natural Gas Market Report - April '26
Natural Gas
April '26 Trading range: $3.04 to $3.16.
Overall, it's been a very flat week for natgas. We opened the week at $3.09 and closed the regular trading (hours) week at $3.06.
In that time, we went as low as $2.92 and as high as $3.25.
The market appears ready for Shoulder Season.
Brent ($111) and Crude ($97) are up today, both up around $2.50.
LNG
- U.S. terminals currently operating between 95% - 100% capacity.
- New trains/terminals ramping up faster than expected will add support to the market.
- With Ras Laffan down for now, the U.S. looks to strengthen our world domination in LNG.
Power
- Power is also feeling Shoulder Season bearishness with limited demand outside of the West/SW/TX for CDDs and HDDs falling in other regions.
- No widespread grid stress to report.
- Mild temps across major load regions such as Mid-Con/NE keeping it bearish.
Today's Drivers
The Bears – Winter is almost over, record production continues, Solar is cranking in TX and CA, easing natgas demand in both regions.
The Bulls – LNG exports staying near 20 Bcf/D, CDDs up in the West.
Today's Special
Shoulder Season and March Madness look to have started at the same time.
We are entering a classic transition market, and this is why we think so.
- Winter volatility is leaving the market.
- Summer demand is not yet on the radar.
- LNG is supportive of higher prices but is capped at full capacity, so the support is limited.
Unless there are some surprises in the market such as production/supply disruptions, downed pipelines, weather not yet seen on the radar, we are shaping up for weak demand, growing production, and storage injections to make everyone feel a little safer.
Our Nightcap Beats Their Recap