Natural Gas Prices Rebound from Three-Month Low Amid Record Production
Natural gas prices have been trading at $2.766 after bouncing from a three-month low of $2.682. The contract has increased by roughly 1.6% and is now testing the underside of a former support zone that has flipped into resistance.
The August contract expired on Wednesday, but the September contract took over as prompt. Prices rebounded from the three-month low due to fund short covering after the expiry. The bounce was sustained through Thursday's storage report and into Friday.
Every fundamental input turned bearish inside three weeks. Lower 48 dry gas production averaged 110.6 Bcf/d across July, up from 110.0 Bcf/d in June and matching the record monthly high set in December 2025. Working inventories closed the week ending July 24 at 3,084 Bcf, sitting 185 Bcf or 6.4% above the five-year average of 2,899 Bcf.
The Commodity Weather Group now calls for normal to below-normal temperatures across the central and eastern United States through August 7, removing the cooling-demand catalyst that had propped prices during the heat wave earlier in the month.