Natural Gas Price Forecast

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Natural Gas Price Forecast

Natural Gas Price Forecast For 2026

According to RBC, the natural gas prices will touch $3.50. This is a bullish forecast and highlights that more upside is ahead for natural gas. This comes at a time when the natural gas prices are still below the $3.00 level.

RBC Capital Markets added that natural gas prices are going through a period of temporarily calm. If we look around, the landed natural gas and the LNG prices are actually high, while natural gas is still way below that.

Natural Gas Prices Can Touch $3.50

The bank thinks the natural gas will eventually climb up to $3.25 by the end of Q2. In Q3 and Q4 2026, the natural gas prices will catch up to LNG and landed natural gas. By then, the bank is forecasting a price of $3.50/MMBtu, which will put it close to the LNG prices.

In the short-term, there's a chance that the natural gas prices might stay between $2.76 - $3.25. But beyond the Q2, it is simply not possible for the natural gas to stay below the $3.00 threshold.

In 2027, the RBC added that structural balances will remain tight, which will support prices in the long-term. In 2027, the bank forecasts higher prices and a lower storage outcome.

This will create a classic scenario where the demand for natural gas will be high while the storage or the supply will not be enough.

So, while the 2026 target for natural gas is $3.50, more upside is expected in 2027. The bank commented that the domestic demand can also lead to a surprise next year.

But this forecast depends heavily on the high geopolitical tensions. If things calm down and the sea routes open up, then the natural gas prices will likely trade near the $3.00. So, even if things improve, the natural gas prices are expected to stay high for this and the next year.

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