Natural gas prices concluded the trading session down by 2.41% at Rs 270.9, driven by anticipations of diminished near-term demand, adequate storage capacities, and decreased gas deliveries to LNG export terminals during the seasonal maintenance phase. Market sentiment remained under pressure as weather forecasts continued to suggest predominantly near-normal temperatures through May 27, constraining substantial heating or cooling demand across key consumption areas in the United States. Additional pressure emerged from diminished LNG export demand after a liquefaction train at the Freeport LNG export terminal in Texas resumed operations following a temporary outage attributed to a compressor issue.

Seasonal maintenance at LNG facilities has concurrently diminished export flows, exerting downward pressure on overall gas consumption. As reported by LSEG, the average natural gas output throughout the United States. The Lower 48 states experienced a decrease to 109.3 billion cubic feet per day in May, down from 109.6 bcfd in April and the peak of 110.6 bcfd recorded in December 2025. Daily output is estimated to have decreased by 4.3 bcfd over the past three days, reaching a one-week low of 105.9 bcfd. Production cuts by major energy companies persisted, as weak spot prices deterred robust output expansion.

Nevertheless, substantial inventories persisted in limiting upward momentum. During the week ending April 24, U.S. energy firms injected 79 billion cubic feet of gas into storage, aligning closely with market expectations. Total inventories increased to 2.142 trillion cubic feet, reflecting a rise of 5.7% compared to the previous year and exceeding the five-year seasonal average by 7.7%. The U.S. Energy Information Administration has projected that domestic natural gas production will persist in its upward trajectory, reaching record levels through 2027. Meanwhile, demand is anticipated to experience a slight decline in 2026, followed by a recovery in 2027.

From a technical perspective, the market is experiencing long liquidation, evidenced by a 20.16% decrease in open interest, which settled at 21,438, alongside a price decline of Rs 6.7. Natural gas is currently establishing a support level at Rs 266.1; a decline below this point could lead to a test of the Rs 261.3 level. Conversely, resistance is identified at Rs 278.7, with a breakthrough likely to propel prices toward Rs 286.5.