Natural Gas Market Note | 03.04.2026
Prices give up most of the previous two days' gains as the global market eases.
Natural gas futures retreated on Wednesday, with the prompt-month April 2026 contract declining by 14 cents to finish the day at $2.92 per MMBtu — firmly below the key $3.00 benchmark. Losses were less pronounced further across the curve, with Winter 2026-27 still sitting $0.14 per MMBtu above week-ago levels.
After rallying more than 70% in two days, benchmark European futures declined by about 12% on Wednesday. While the risk of an extended supply disruption is still very much on the table, panic subsided somewhat as news emerged that Iran may be seeking an end to the conflict. The coming days and weeks will be telling as to the actual impact of tightening supply, and the risk to global natural gas pricing still appears to be to the upside until a resolution to the war begins to look more concrete.
Tomorrow’s U.S. storage report is expected to show a draw of 125 Bcf, according to The Wall Street Journal survey, with the range of responses spanning from 116 to 137 Bcf. Market fundamentals tightened considerably due to renewed heating demand following the historically light 52-Bcf draw in the previous week. If the consensus is correct, it would expand the deficit to the five-year average back to 36 Bcf after inventories were within 7 Bcf of average levels the week prior.
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