gas prices today: Why are gas prices down today, and will Waha Hub rates rise or decline in near future? US natgas futures, Henry Hub futures, European TTF futures and Japan-Korea Marker
Why did gas prices drop today and will Waha Hub rates rise or fall in the near future?
U.S. natural gas futures fell nearly 3% on weak demand forecasts and lower LNG feed gas flows. The New York Mercantile Exchange’s June contract fell 7.9 cents to settle at $2.788 per mmBtu. This decline came after six days of price increases. The market reacted to low demand expectations and seasonal LNG maintenance.
Demand outlook and impact of LNG maintenance
Gas flows to LNG export facilities dropped during spring maintenance. Average flows to nine major U.S. LNG facilities fell to 17.3 bcfd in May from a record 18.8 bcfd in April. Low export demand reduces total gas consumption and suppresses prices. Weather forecasts also lowered demand expectations. Meteorologists expect near-normal weather until May 20. Cooling demand is starting to exceed heating demand for the first time this year. LSEG expects total US gas demand to remain around 97.8 bcf per day in the coming weeks. This estimate was lower than previous estimates, causing prices to drop.
Why did gasoline prices drop today?
Gas prices have fallen as supply remains strong while demand expectations have fallen. Mild spring weather allowed companies to inject more gas into tanks. Storage levels remain above the five-year average. Weekly storage increased by 72 bcf, bringing total storage to 2,214 bcf. Storage is approximately 7.2% above the five-year average. The surplus is down from 8% the previous week, but remains high enough to keep pressure on prices. Low LNG exports, mild weather conditions and storage surplus are the main reasons for the current price decline.
Will Waha Hub rates go up or down in the near future?
Waha Hub prices remain negative due to pipeline restrictions in the Permian Basin. Gas remains stuck in the region because pipeline capacity cannot meet the production related to oil drilling. Waha Hub prices have remained negative for a record 62 consecutive days. The hub has averaged minus $2.22 per mmBtu so far in 2026. This compares to a positive $1.15 in 2025 and $2.88 over the past five years.
Negative prices have occurred many times in recent years. It happened 17 times in 2019, six times in 2020, once in 2023, 49 times in 2024, 39 times in 2025, and 71 times so far in 2026. Future price direction depends on pipeline expansion, production trends and recovery of export demand. Waha Hub prices may remain under pressure until carrying capacity improves.
Supply trends and production disruptions
US gas production has decreased recently. Average production in the lower 48 fell to 109.1 bcfd in May from 109.5 bcfd in April. Production reached a record high of 110.6 bcf per day in December 2025. Low spot prices led producers to reduce production. EQT, the second-largest gas producer in the United States, has temporarily cut production as it waits for prices to rise later this year. Production cuts could reduce supply and support prices in the coming months if demand increases.
Weather and storage changes
Mild spring weather allowed more gas injection into the tank. However, the recent cooling weather and decreases in production have reduced the storage surplus somewhat. As summer approaches, cooling demand is expected to increase. This seasonal change could support gas demand and further reduce stock levels. Weather forecasts continue to be an important factor for near-term price movements.
Global gas price comparison
Global gas benchmarks remain higher than US prices. Henry Hub futures traded around $2.85 per mmBtu. European TTF futures traded around $16.57 per mmBtu. The Japan-Korea Marker traded around $16.86 per mmBtu. Higher global prices support LNG exports over time. However, short-term maintenance temporarily reduced export demand.
Energy production and energy mix
Natural gas accounted for 32% of US electricity generation in the week ending May 1. Wind produced 15%, solar 12%, hydropower 7%, coal 13% and nuclear 20%. Gas remains an important source of electricity fuel. Changes in seasonal power demand will affect gas consumption in the coming months.
Analysts’ opinions and market outlook
Analysts expect mixed signals in the near term. Low LNG exports and mild weather are keeping prices under pressure. Production cuts and summer cooling demand may support prices later. Storage surplus is slowly diminishing. LNG demand may recover after maintenance is completed. Pipeline expansions could eventually support Waha Hub pricing. The market outlook depends on demand recovery, export growth and production adjustments.
What should investors do now?
Investors monitor storage levels, weather forecasts, LNG flows and production trends. Short-term pressure may continue due to maintenance and mild weather. The long-term outlook depends on summer demand, production discipline and export growth. Pipeline expansions in the Permian Basin could later change Waha Hub prices. Investors continue to monitor the supply and demand balance, storage levels, LNG exports, production disruptions and weather conditions.
FAQ
Q1. Why are LNG exports affecting gas prices right now?
Spring maintenance reduces gas flow to LNG plants. Lower export demand reduces total gas consumption. This creates a short-term oversupply in the market and causes natural gas futures and cash prices to decline.
Q2. Can Waha Hub prices remain negative for a long time?
Waha Hub prices could remain negative if pipeline capacity remains limited. Prices may improve when new pipelines open, production slows, or LNG export demand increases and excess Permian gas supplies disappear.
