US Natural Gas Futures Plummet on Record Production and Milder Forecasts

US natural gas futures plummeted to a near three-month low as record production clashed with milder demand forecasts and reduced exports.

Data from LSEG shows Lower 48 production averaging 110.6 billion cubic feet per day in July, matching the prior monthly record.

Despite comfortable storage levels, analysts expect inventories to remain above the five-year average, but forecasters have cooled their expectations for warmer-than-normal weather into mid-August.

The 'plenty of gas' message is also evident in longer-dated prices, with the March-over-April 2027 premium falling to a record low near 14 cents per million British thermal units.