UBS said on Friday that U.S. natural gas prices have gone up a lot in recent weeks as forecasts show a colder-than-normal start to winter across the country.
UBS believes the market is now focused on possible heating demand and the steady growth of U.S. natural gas exports. This is happening even though gas storage levels were strong at the start of the winter season. The bank also said that changes in weather and forecasts still have a big effect on short-term prices.
UBS is still optimistic about natural gas prices based on expectations of a normal winter. The bank said that although gas storage levels are currently good, upcoming heating needs and export demands will create pressure in the next few months.
According to UBS analysts, higher prices will be needed to encourage enough supply growth to meet the increasing U.S. export commitments expected for 2026. This supply-and-demand situation supports UBS’s positive outlook beyond just short-term weather changes.
In conclusion, UBS believes that longer-term U.S. natural gas futures are still a good value for investors. They think long-term export growth—not just winter weather—will help keep natural gas prices supported.
