Heat Wave Boosts US Natural Gas Prices Amid Output Declines
US natural gas prices rose on August 24, 2026, as record-breaking heat and reduced output combined to drive up demand. Forecasts from Commodity Weather Group indicate that this month is on track to eclipse 2007 for the hottest population-weighted August on record.
The private forecaster's predictions suggest higher consumption of air-conditioning, which in turn increases the need for natural gas as a power-plant fuel. As consumers crank up their AC use, they're driving up demand and pushing prices higher.
Output also fell over the weekend, led by declines in Appalachian production region due to uneconomic prices for short-term delivery. The Tetco M-2 Receipts index, a key indicator of Appalachia gas prices, plummeted to $1.61 per million British thermal units on Friday - a 50% decrease from levels seen in June and the first half of July.
The combination of reduced output and soaring demand has pushed US natural gas prices higher.