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

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

The decline pushed the contract into technically oversold territory for the first time since mid-July. Speculators have been increasing their net short futures and options positions on the NYMEX and Intercontinental Exchange, according to the U.S. Commodity Futures Trading Commission’s Commitments of Traders report.

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. Output reached a daily record high of 112.3 bcfd on Sunday.

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. The weather is expected to remain mostly warmer than normal through August 11, forcing power generators to continue burning lots of gas.