US natural gas futures hit seven-week high as heat drives demand, output slips

NEW YORK: US natural gas futures edged up to a fresh seven-week high on Monday on forecasts for warmer than expected weather over the next two weeks and a decline in output in recent weeks.

Front-month gas futures for June delivery on the New York Mercantile Exchange rose 3.9 cents, or 1.3%, to $2.999 per million British thermal units (mmBtu), putting the contract on track for its highest close since March 27 for a second day in a row.

Financial group LSEG said average gas output in the US Lower 48 states slipped to 109.5 billion cubic feet per day (bcfd) so far in May, from 109.8 bcfd in April and a monthly record high of 110.6 bcfd in December 2025.

Meteorologists forecast the weather will remain mostly warmer than normal through June 2.

High temperatures in Washington D.C. will reach record-breaking levels of 99 degrees Fahrenheit (37.2 degrees Celsius) on Monday, 101 F on Tuesday and 97 F on Wednesday, according to weather forecaster AccuWeather.

That compares with an all-time high of 96 F hit on May 18, 1877, May 19, 1997, and on May 20, 1996. The normal high in the nation’s capital around this time of year is 77 F.

To escape the heat, homes and businesses in the PJM power grid, which includes Washington, cranked up their air conditioners, boosting spot prices for Monday by 249% to $145 per megawatt-hour, the highest since February. PJM manages the electric grid in all or part of 13 states from New Jersey to Illinois.

LSEG projected average gas demand in the Lower 48 states, including exports, would rise from 98.1 bcfd this week to 98.8 bcfd next week. The forecast for this week was lower than LSEG’s outlook on Friday.