Natural Gas Futures Rise as Storage Surplus Narrows

Natural gas futures traded at $2.900 per MMBtu on September 2, up 0.42% from the previous settlement, as the market digested a smaller-than-usual storage injection and forecasts for continued warm weather.

The week ending August 21 saw a 15 Bcf injection into storage, which is less than half of the five-year average of 33 Bcf. This resulted in a surplus of 167 Bcf, down from a peak of 198 Bcf on August 7.

Despite this tightening in supply, natural gas production is expected to reach a record high in 2026, with dry gas production forecast to average 111.2 Bcf per day, up 3.3% from the previous year's record.