Gas Futures Flat Amid Record Production, Surplus Inventory

US natural gas futures remained largely unchanged on Friday as opposing forecasts offset each other. While higher-than-expected temperatures over the next two weeks are expected to boost demand, production is projected to reach a record high and inventory levels remain in surplus.

The front-month contract for September delivery on the New York Mercantile Exchange fell 1.1 cents, or 0.4%, to settle at $2.747 per million British thermal units (mmBtu). This marks a sixth consecutive week of decline, with prices down around 15% during that period.

Average gas output in the US Lower 48 states rose to 110.7 billion cubic feet per day (bcfd) so far in July, exceeding the monthly record high set in December 2025. Meanwhile, forecasters project a further increase in gas in storage, with levels expected to rise to 6.6% above normal by the end of next week.