NEW YORK: US natural gas futures fell on Thursday and were on track for a second straight weekly decline as ample supplies, lower oil prices and a milder weather outlook weighed on the market.
Front-month gas futures for August delivery on the New York Mercantile Exchange fell 3.2 cents, or 1percent, to USD3.19 per million British thermal units. The contract was down 1.4percent so far this week. Markets will be closed on Friday for the Independence Day holiday.
“This market is drifting lower partially on spillover from the weak oil pricing and on further moderation in the short-term temperature outlooks.
Moderation away from this week’s extreme heat amid ample storage levels is deterring buying interest,” Consultancy Ritterbusch & Associates said in a note.
Prices fell ahead of a federal report later in the day which is expected to show energy firms added an above normal 81 billion cubic feet of natural gas into storage last week.
The estimate compares with an injection of 61 bcf during the same week a year ago and an average increase for that week of 64 bcf over the past five years. They projected the amount of gas in inventories would edge up to 6.2percent above normal during the week ended June 26.
Oil prices fell nearly 2percent for the third consecutive day as concerns over supply disruptions eased after Qatar said Iran and the US had made progress in talks over the Strait of Hormuz.
Meanwhile, meteorologists forecast warmer than normal temperatures nationwide through July 16. Although forecasts have moderated slightly as Cooling Degree Days fell from 253 on Wednesday to 247 on Thursday. CDDs measure energy demand to cool buildings.
Financial group LSEG said average gas output in the US Lower 48 states fell to 109.6 billion cubic feet per day (bcfd) so far in July, down from 110 bcfd in June. That reading compares with a monthly record high of 110.6 bcfd in December 2025.
LSEG projected average gas demand in the Lower 48 states, including exports, would rise from 105.8 bcfd this week to 109.6 bcfd next week.
Average gas flows to the nine big US LNG export plants rose to 17.8 bcfd so far in July from 17.3 bcfd in June. That reading compares with a monthly record high of 18.8 bcfd in April.
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