Page 6 - FIPI - Policy & Economic Report May 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Natural Gas spot prices at the US Henry Hub benchmark averaged $2.77 per million British thermal units
(MMBtu) in April 2026. Henry Hub natural gas prices dropped for a third consecutive month in April, falling
~9.0%, m-o-m. Muted domestic demand amid the shoulder season, coupled with high storage levels,
outweighed higher LNG exports, dragging down prices. According to data from the US Energy Information
Administration (EIA), average weekly storage rose by 9.3%, m-o-m, in the period. Prices were down by
~19%, y-o-y.

Overall, the global economy enters the second half of 2026 facing a combination of slower growth,
elevated inflation risks, and increasing geopolitical uncertainty. India, while relatively better positioned
than most major economies, remains exposed to developments in global energy markets and external
trade conditions. The evolving outlook underscores the importance of maintaining macroeconomic
stability, strengthening energy security, and sustaining domestic growth momentum amid an increasingly
uncertain global environment.

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