US Natural Gas Futures Drop, Set for Second Annual Gain

2025-12-31 15:30 By Joana Ferreira 1 min. read

US natural gas futures tumbled to around $3.70 per million British thermal units, their lowest level since October 23, pressured by forecasts of above-normal temperatures next week.

Heating Degree Days (HDDs), which measure energy demand for heating, are expected to fall from 439 on Tuesday to 413 on Wednesday, signaling reduced short-term demand.

LSEG projected average gas demand in the lower 48 states, including exports, to edge lower from 137.8 bcfd this week to 134.5 bcfd next week, below earlier forecasts.

Meanwhile, the EIA expects dry gas production to rise to 109.1 bcfd in 2026, up from a record 103.6 bcfd in 2023.

Despite today’s decline, natural gas is on track for a roughly 4% gain in 2025, marking a second consecutive annual rise, supported by record LNG export flows.

Looking ahead, the market is expected to remain buoyed in 2026 by rising demand for electrification and gas-fired power generation.



News Stream
US Natural Gas Hits 3-Month Low
US natural gas futures fell to around $2.72 per MMBtu, extending losses to their lowest level in three months, as strong production, comfortable inventory levels, and weak LNG feedgas demand continue to weigh on prices. Average gas output in the US Lower 48 states rose to 110.6 bcfd so far in July from 110.0 bcfd in June, matching the monthly record high reached in December 2025. The increase in production has added to concerns over an oversupplied market, with inventories remaining 6.4% above the five-year seasonal average as of July 17 and expected to rise to 6.6% above normal for the week ending July 24. LNG export demand also softened, with gas flows to major export terminals averaging 17.2 bcfd so far this month, down slightly from 17.4 bcfd in June, partly due to scheduled maintenance at Freeport LNG’s facility in Texas. Meanwhile, temperatures are forecast to remain mostly above normal through August 11, likely keeping power generators’ gas demand elevated to meet cooling needs.
2026-07-28
US Natural Gas Drops to Over 11-Week Low
US natural gas futures slid more than 3.5% to $2.77 per MMBtu on Monday, the lowest since May 8, tracking the decline in global energy prices as Middle East hostilities paused. Iran said on Sunday that it had halted retaliatory attacks against US allies in the region after Washington stopped its strikes on the country since Friday. US gas prices also dropped amid ample supply conditions, with EIA data showing that gas inventories remained 6.4% above the five-year seasonal average as of July 17, while average gas output in the Lower 48 states rose to 110.4 bcfd so far in July from 110.0 bcfd in June. LNG export demand also eased, with gas flows to major export terminals averaging 17.2 bcfd so far this month, slightly below 17.4 bcfd in June, partly due to scheduled maintenance at Freeport LNG’s facility in Texas. Meanwhile, temperatures are forecast to remain mostly above normal through August 8, which is likely to keep gas demand from power generators elevated to meet cooling needs.
2026-07-27
Natural gas Hits 10-week Low
Natural gas decreased to 2.82 USD/MMBtu, the lowest since May 2026. Over the past 4 weeks, Natural gas lost 11.27%, and in the last 12 months, it decreased 7.94%.
2026-07-27