US Natural Gas Prices Plummet to 11-Week Low on Record Output

US natural gas futures fell by about 4% to an 11-week low on Monday, driven by record output, lower flows to liquefied natural gas export plants, and ample amounts of gas in storage. The front-month gas futures for August delivery on the New York Mercantile Exchange settled at $2.767 per million British thermal units, down 10.4 cents or 3.6% from Friday's close.

The contract fell to its lowest level since May 7 earlier in the session and pushed it into technically oversold territory for the first time since mid-July. Speculators have been boosting their net short futures and options positions on the NYMEX and Intercontinental Exchange, with the US Commodity Futures Trading Commission's Commitments of Traders report showing they have increased to their highest levels since March 2024.

Analysts at LSEG said average gas output in the US Lower 48 states has risen to 110.6 billion cubic feet per day so far in July, up from 110.0 bcfd in June and in line with the monthly record high of 110.6 bcfd in December 2025.

With mostly mild weather during the spring allowing energy firms to stockpile more gas than usual, analysts project that gas in storage likely rose to 6.6% above normal during the week ended July 24, up from 6.4% above normal during the previous week.