-- US natural gas futures climbed in midday trading Friday, supported by declining production, shifting weather patterns, and steadier export demand, even as ample storage continued to weigh on the market.
The front-month Henry Hub contract and the continuous benchmark each rose 0.26% to $2.65 per million British thermal units after briefly dipping earlier in the session.
Supply-side fundamentals provided support, with average US gas output falling about 3.2 billion cubic feet per day over the past four days to a preliminary 10-week low of 108 Bcf/d, according to Trading Economics. The decline was led by reduced production in Louisiana and Ohio.
Export flows also remained firm. Deliveries to major US LNG export terminals averaged 18.9 Bcf/d so far in April, up from 18.6 Bcf/d in March, helping offset weaker domestic consumption trends.
On the demand side, industrial usage has fallen 3.9 Bcf/d from a month ago, according to NRG Energy, contributing to overall softness in consumption. Gas-fired power generation has also eased slightly compared with last week, though Rystad Energy noted the decline remains seasonal and typical for shoulder-period demand conditions.
Weather forecasts were mixed but broadly supportive of late-week pricing. NatGasWeather.com expects cooler-than-normal conditions across the Northwest and Midwest through Saturday, with highs in the 40s to 50s degrees Fahrenheit and lows in the 20s to 30s.
A broader cooldown is forecast to extend into the Ohio Valley and Northeast from Sunday through Tuesday, potentially lifting heating demand.
Price action briefly turned volatile earlier in the day after geopolitical headlines surrounding the Strait of Hormuz.
Statements from US President Donald Trump and Iranian Foreign Minister Abbas Araghchi indicated the waterway will open under ceasefire conditions, easing concerns about energy transit disruptions and triggering a sharp drop in global crude and European gas prices.
US natural gas futures briefly fell to $2.623/MMBtu in tandem before recovering, reflecting the market's relatively limited direct exposure to international supply routes.
However, rising inventories continued to cap gains. The Energy Information Administration reported a storage build of 59 Bcf for the week ended April 10, above expectations and well above both last year's increase and the five-year average.
The larger-than-expected injection reflected mild weather that suppressed heating demand, with forecasts largely indicating continued above-normal temperatures into early May.