Natural Gas Market Update - May 2026

Market Overview

On May 28, 2026, natural gas (NATGAS) prices experienced a significant increase of over 6%, reaching a price of $3.357 per CFD, with a daily gain of 1.67%. This surge in prices was primarily driven by a recent report on natural gas inventories.

Inventory Report

The net increase in natural gas inventories for the week ending May 22 was reported at 92 billion cubic feet (Bcf), which was below market expectations of 95 Bcf. This figure also fell short of the 5-year average of 97 Bcf and the build from the same week last year, which was 104 Bcf. Additionally, it was lower than the previous week's build of 101 Bcf.

Despite the lower-than-expected inventory increase, total inventories remain 21 Bcf higher than the levels recorded last year, indicating a relatively stable supply situation.

Weather Forecast Impact

The rally in NATGAS prices was further supported by upward revisions in weather forecasts for the coming weeks, suggesting increased demand for natural gas due to potentially higher temperatures.

Other Market Updates

On the same day, oil prices were reported to be declining amid hopes for a deal, as the market anticipates a busy June. Additionally, European equities, represented by the EU50 index, were nearing record highs, supported by broad-based gains and buybacks.

Market participants are also keeping an eye on the upcoming German Consumer Price Index (CPI) data, which could influence the DE40 index and potential changes in European Central Bank (ECB) policy.