US natural gas futures hit four-month low on mild weather, near-record output

NEW YORK: US natural gas futures eased to a fresh four-month low on Wednesday on near-record daily output and forecasts for milder weather and lower heating demand next week than previously expected.

That mild weather and low heating demand should allow utilities to leave more gas in storage than usual for this time of year.

Gas futures for March delivery on the New York Mercantile Exchange fell 2.3 cents, or 0.8percent, to USD3.008 per million British thermal units, putting the contract on track for its lowest close since October 16 for a second day in a row.

In the cash market, average prices at the Waha Hub in the Permian Basin in West Texas remained in negative territory for a ninth day in a row and the 18th time so far this year, as pipeline constraints trapped gas in the nation’s biggest oil-producing basin.

Daily Waha prices closed below zero in 2019. They did so 17 times in 2019, six times in 2020, once in 2023, a record 49 times in 2024, and 39 times in 2025.

Waha prices have averaged USD1.35 per mmBtu so far this year, compared with USD1.15 in 2025 and a five-year average (2021-2025) of USD2.88.

Financial firm LSEG said average gas output in the Lower 48 states climbed to 108.6 billion cubic feet per day (bcfd) so far in February, up from 106.3 bcfd in January. That compares with a monthly record high of 109.7 bcfd in December.