US Natgas Falls Sharply Amid Milder Weather and Lower LNG Flows
US natural gas futures plummeted by about 4% on Friday to an eight-week low, driven by forecasts for milder weather and lower liquefied natural gas (LNG) export flows. The front-month contract fell 12.4 cents to $2.888 per million British thermal units (mmBtu), marking its lowest close since May 13.
This decline puts the contract on track for its third consecutive weekly drop, a feat it last achieved in February. For the year, futures for calendar 2027 have fallen to $3.35 per mmBtu, their lowest level since February 2022.
The US Lower 48 states' average gas output dropped to 109.7 billion cubic feet per day (bcfd) in July, down from June's 110.0 bcfd and December 2025's record high of 110.6 bcfd. Analysts project that the amount of gas in inventories will remain at a 6.6% surplus above normal through mid-July.