Natural gas (NG) prices are now consolidating within the $2.50–$2.80 trading range.
Fundamental factors confirm that the US domestic commodity market is on solid ground. The latest Energy Information Administration (EIA) report showed that NG inventories increased by 79 billion cubic feet last week—slightly below expectations—bringing the total to 2.142 trillion cubic feet. This figure not only exceeds the average seasonal level but also surpasses the 2025 results. The current surplus acts as a much-needed safety cushion during the storage refill period for the next heating cycle—a hurdle that will cap any price growth potential in the coming weeks.
The weather forecast for May and early June remains quite mild. According to the latest outlook, temperatures across most parts of the United States are expected to hover near seasonal averages, with a minimal number of cold and hot fronts. What does this mean for the NG market? We are unlikely to see a surge in demand for power generation. Air conditioning needs have not yet reached summer levels. Meanwhile, the heating season is coming to an end. Thus, gas consumption remains relatively balanced, leaving the domestic market awash with additional volumes and creating favorable conditions to continue stockpiling in the near future.
The ultimate recommendation is to sell natural gas at the current price, targeting $2.50 within a couple of months. For better risk management, place a Stop Loss order at around $2.80 in case the market moves against us.
This content is for informational purposes only and is not intended to be investing advice.
