Henry Hub natural gas futures declined 2.66% to $3.143 per million British thermal units on June 9, extending a week-long slide as market fundamentals pointed to adequate supply entering the summer injection season. The EIA’s latest weekly storage report showed an injection of 89 Bcf, bringing total working gas storage to 2.45 Tcf, in line with the five-year average.
The supply side remains well-supplied. EIA data shows US marketed natural gas production averaging approximately 120.6 Bcf/d in 2026, driven primarily by associated gas from the Permian Basin oil production boom and strong output from the Haynesville and Appalachia formations. Associated gas production continues to grow as by-product of record oil output, keeping a lid on Henry Hub prices.
LNG exports are the bright spot for demand. US LNG feedgas demand averaged approximately 17 Bcf/d in Q2 2026, up from 15.1 Bcf/d in 2025, driven by new liquefaction capacity at Venture Global’s Plaquemines LNG and the continued ramp-up of Cheniere’s Corpus Christi Stage 3. The growth in LNG exports is absorbing some of the supply surplus, but not enough to tighten the market significantly.
The EIA’s Short-Term Energy Outlook projects Henry Hub prices averaging below $3.50/mmBtu for 2026, with supply growth marginally outpacing demand growth. Looking into 2027, the EIA expects a projected production decline as associated gas growth slows and dedicated natural gas drilling remains subdued, which should tighten the market and support prices above $4.00/mmBtu.
Natural gas buyers benefit from a well-supplied market heading into summer. Current sub-$3.50 prices present good opportunity to lock in injection-season volumes. The LNG demand growth provides a floor, but the associated gas glut from oil production caps upside. Consider calendar spreads for winter 2026–2027, which may offer better value than prompt-month positions.