US Natgas Prices Hold Steady Amid Hot Weather Forecasts
US natural gas futures prices were relatively stable on Friday as bullish forecasts for hot weather over the next two weeks offset bearish factors, including record-high output and ample storage levels.
The front-month contract for September delivery on the New York Mercantile Exchange fell by 1.1 cents, or 0.4 percent, to settle at USD2.747 per million British thermal units (mmBtu). This marks a sixth consecutive week of decline for the contract, with prices falling about 15 percent since December.
According to LSEG, average gas output in the US Lower 48 states rose to 110.7 billion cubic feet per day (bcfd) so far in July, surpassing the monthly record high set in December 2025. Energy firms have been able to maintain higher-than-average inventory levels due to near-record output and mild spring weather.
Analysts project that gas in storage will rise to 6.6 percent above normal by the week ended July 31, despite weeks of above-normal temperatures this summer. Meteorologists forecast warmer-than-normal weather through August 15, driving up demand for natural gas to keep air conditioners humming.