U.S. natural gas futures reached a two-week low due to high output levels, negative spot prices at the Waha Hub in West Texas, and expected mild weather through early April. This weather forecast will likely result in lower gas demand for heating, keeping gas pulled from storage below the usual levels for this time of year.

Despite gas stockpiles being 12% below normal after extreme cold in January and February, prices for April delivery on the New York Mercantile Exchange decreased to $4.076 per mmBtu. Record gas flows to U.S. LNG export plants and increased demand projections did not prevent the decline in futures prices.

Pipeline maintenance in the Permian shale led to negative gas prices at the Waha Hub in West Texas, affecting Kinder Morgan's El Paso Natural Gas pipeline and WhiteWater, MPLX, and Enbridge's Whistler pipeline. Speculators reduced their positions in gas futures following a drop of about 7% last week.

Average gas output in the Lower 48 U.S. states has increased in March, and meteorologists expect warmer-than-normal weather through April 1. Gas demand is projected to rise in the Lower 48, including exports to 107.7 bcfd next week, with gas flowing to U.S. LNG export plants reaching 15.7 bcfd in March.