Natural Gas Futures Plummet to 3-Month Low Amid Strong Production

Natural gas futures have been experiencing volatility in recent days, trading near $2.766 per MMBtu after breaking from $3.00 and basing at $2.682, the lowest level in three months.

The July production of Lower 48 averaged 110.6 bcfd, matching the record set in December 2025, while storage reached 3,084 Bcf on a 28 Bcf injection, 185 Bcf and 6.4% above the five-year average of 2,899 Bcf.

The breakdown was clean and violent, with gas slicing through a rising trend line and its short-term moving averages to confirm resumption of the broader downtrend.

Despite a hot August pattern, comfortable supplies and soft LNG demand have weighed on prices, causing a decline of 14 cents in the five-day average.