Natural Gas Prices Plunge Amid Supply Concerns — Are Energy Firms Feeling The Heat?

Top natural gas producer Expand Energy’s stock fell 2%, while EQT shares were down 2.2%.

• U.S. gas futures dropped over 6% amid concerns about demand. 
• Natural gas production in the Lower 48 has reportedly climbed to 109.7 billion cubic feet a day so far this December, exceeding the previous monthly record of 109.6 billion cubic feet in November.
• Meteorologists reportedly expect weather across most of the U.S. to remain close to seasonal norms through December 23, which could keep demand relatively muted.

U.S. natural gas stocks declined on Monday after a sharp drop in fuel prices amid concerns about demand.

Top natural gas producer Expand Energy’s stock fell 2%, while EQT shares were down 2.2%. Shares of liquefied natural gas firm Venture Global fell over 1% while Cheniere Energy stock fell over 1.8%. The United States Natural Gas Fund dropped over 6%.

Why Did Gas Prices Fall?

According to a Reuters report, U.S. gas futures dropped 6% amid forecasts of less cold weather over the next two weeks than previously expected, near-record output, and elevated storage.

As per the report, natural gas production in the Lower 48 has climbed to 109.7 billion cubic feet a day so far in December, exceeding the previous monthly record of 109.6 billion in November. The steady flow of supply has allowed energy companies to store more fuel than usual, pushing storage levels about 5% above the normal range for this time of year.

Meteorologists reportedly expect weather across most of the U.S. to remain close to seasonal norms through December 23, which could keep demand relatively muted.

What Are Stocktwits Users Thinking?  

Retail sentiment on Stocktwits United States Natural Gas Fund was still in the ‘bullish’ territory at the time of writing.

One Stocktwits user cautioned that Natgas looks way overextended and is in pullback mode now.

U.S. natural gas demand is expected to hit fresh highs in 2025 and 2026, according to a U.S. Energy Information Administration forecast, amid the ongoing push for gas-fired power plants and power producers scrambling to raise electricity output to meet a surge in AI data center-led demand.

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