NEW YORK: US natural gas futures eased about 1 percent on Tuesday on forecasts for less demand over the next two weeks than previously expected.
Front-month gas futures for August delivery on the New York Mercantile Exchange fell 3.5 cents, or 1.1 percent, to USD3.21 per million British thermal units (mmBtu). On Monday, the contract closed at its highest price since June 29.
Financial group LSEG said average gas output in the US Lower 48 states has slid to 109.2 billion cubic feet per day (bcfd) so far in July, down from 110.0 bcfd in June and a monthly record high of 110.6 bcfd in December 2025.
Analysts said mostly mild weather during the spring allowed energy firms to stockpile more gas than usual.
They projected the amount of gas in inventories would hold around 6.4 percent above normal during the week ended July 3, similar to the previous week.
Meteorologists forecast the weather would remain mostly warmer than normal through July 22, keeping the amount of gas power generators burn high as homes and businesses crank up air conditioners. About 40 percent of US power generation comes from gas-fired plants.
LSEG projected average gas demand in the Lower 48 states, including exports, would rise from 109.3 bcfd this week to 109.7 bcfd next week. Those forecasts were lower than LSEG’s outlook on Monday.
Average gas flows to the nine big US LNG export plants have risen to 17.9 bcfd so far in July, up from 17.4 bcfd in June, but remained below the monthly record high of 18.8 bcfd in April.
Comments