US Natural Gas Prices Plummet on Near-Record Output and Milder Weather

US natural gas futures prices declined by about 2% to a two-week low on Friday, driven by near-record output, ample fuel in storage, and forecasts for less hot weather over the next two weeks.

The front-month gas futures contract for October delivery on the New York Mercantile Exchange fell 4.5 cents, or 1.6%, to $2.789 per million British thermal units, putting it on track for its lowest close since August 25.

According to LSEG, average gas output in the US Lower 48 states rose to 113.4 billion cubic feet per day (bcfd) so far in September, up from a monthly record high of 112.2 bcfd in August.