Henry Hub natural gas is trading in a range of $2.94-3.34/MMBtu in late June 2026, according to the EIA's June 2026 STEO. The June contract expired slightly above $3/MMBtu on May 27, and prompt-month futures have held above that level.
The market remains well-supplied heading into summer. EIA data shows US underground gas storage at 2,205 Bcf for the week ending May 1, 2026, 75 Bcf above the prior year and 139 Bcf above the five-year average. The EIA notes that more natural gas will be held in inventory throughout the forecast than expected earlier.
US marketed natural gas production is expected to grow roughly 2% in 2026 to 109.6 Bcf/d, driven by increased associated gas from record oil production in the Permian Basin. Higher crude oil prices are encouraging additional drilling that produces more associated natural gas.
LNG exports are the primary demand growth driver. US LNG gross exports are projected at 16.7-17.0 Bcf/d in 2026, up from 15.1 Bcf/d in 2025, as Plaquemines LNG, Corpus Christi Stage 3, and Golden Pass continue ramping.
Power sector demand is expected to rise about 3% during summer 2026 as above-average temperatures boost cooling load. The American Gas Association reports total US gas demand including exports running above year-ago levels.
The EIA's June 2026 STEO expects Henry Hub to average $3.34/MMBtu through the second half of 2026, then edge up to $3.46/MMBtu in 2027. Goldman Sachs holds a more constructive $4.15/MMBtu target, citing the secular demand outlook for natural gas.
The forward curve shows mild contango in the $3.30-3.80 range for 2027. The EIA expects supply growth to outpace demand growth by 0.5 Bcf/d in 2026, then reverse in 2027 as LNG demand growth accelerates.
For natural gas buyers, current prices offer an attractive entry point for medium-term hedges. The well-supplied market caps near-term upside, while LNG-driven demand growth provides a floor.
Well-supplied market heading into summer with storage above 5-year average. Use current $3.00-3.34 levels to build medium-term hedges for late 2026 and 2027. The contango in the forward curve is mild, making laddered swaps preferable to fixed-price contracts. LNG export ramp-up provides structural demand growth but associated gas from record oil production limits price spikes.