NEW YORK: US natural gas futures fell for a second straight session on Monday, as ample supplies kept pressure on the market despite forecasts for hotter weather in the coming weeks.
On its first day as the front-month, gas futures for August delivery on the New York Mercantile Exchange fell 8.2 cents, or 2.5 percent, to USD3.20 per million British thermal units. The contract is down 2.7 percent so far this month.
“The market thinks the heat wave is going to be short-lived and that next week temperatures will cool back to normal. With production remaining strong, that’s keeping the market relatively well supplied, and that is driving prices lower,” said Phil Flynn, senior analyst for Price Futures Group.
Financial group LSEG said average gas output in the US Lower 48 states held at 110 billion cubic feet per day so far in June, slightly higher than May. That compares with a monthly record high of 110.6 bcfd in December 2025.
The US Energy Information Administration (EIA) said last week that energy firms added a near-normal 76 billion cubic feet (bcf) of gas into storage during the week ended June 19, keeping overall stockpiles around 5.7 percent above normal levels for this time of year.
Meteorologists forecast warmer than normal temperatures nationwide through July 13, with Cooling Degree Days rising from 224 on Friday to 243 on Monday. CDDs measure energy demand to cool buildings.
Warmer than normal temperatures should boost the amount of gas power generators burn to keep air conditioners humming. About 40 percent of US power generation comes from gas-fired plants.
“While we are maintaining a bullish trading stance, we can further suggest that the expected trip higher from here is likely to be characterized by a steady/choppy uptrend with a lot of backing and filling with any sharp price spikes heavily dependent upon some extreme hot temperature forecasts within the second half of July,” Consultancy Ritterbusch & Associates said in a note.
LSEG projected average gas demand in the Lower 48 states, including exports, would rise from 105.8 bcfd this week to 109.2 bcfd next week.