Natural gas prices experienced a decline of 3.22%, settling at Rs 258.4. This decrease was influenced by diminished short-term demand forecasts and a reduction in gas flows to LNG export terminals, coinciding with the seasonal maintenance period in spring. Pipeline deliveries to LNG export plants have decreased to their lowest level since late January, as maintenance activities have temporarily curtailed export capacity, resulting in an increased availability of natural gas within the domestic U.S. market. The subdued export demand forecast, coupled with anticipated moderate weather conditions in the forthcoming two weeks, exerted significant downward pressure on prices.

In light of the short-term softness, the market remains attentive to the incremental shift towards heightened cooling demand as the summer season draws near. On the supply side, consistently low prices have compelled numerous producers to scale back drilling activity and temporarily limit production. Leading producers, such as EQT Corporation, have reduced production to prevent selling gas at diminished price points. According to financial group LSEG, the average gas production in the United States. The Lower 48 states experienced a decline to 109.1 billion cubic feet per day in May, down from 109.5 bcfd in April and below the record high of 110.6 bcfd achieved in December 2025. Storage data aligned closely with market expectations.

U.S. energy firms injected 79 billion cubic feet of natural gas into storage during the week ended April 24. This figure is lower than the 105 bcf build recorded during the same period last year, yet it exceeds the five-year average increase of 63 bcf. Total inventories increased to 2.142 trillion cubic feet, which is 7.7% higher than the seasonal average. The U.S. Energy Information Administration has projected that natural gas production will achieve record highs in 2026 and 2027, with LNG exports anticipated to expand steadily during this period.

Currently, the market is experiencing renewed selling pressure, evidenced by a significant increase in open interest of 25.39%, reaching 27,661, alongside a price decline of Rs 8.6. Natural gas is experiencing support at Rs 253.6, with additional downside anticipated at Rs 248.9. Resistance appears to be situated around Rs 265, and an upward movement beyond this threshold may propel prices towards Rs 271.7.