US natural gas futures extended their recent losses, trading near $3.21 per MMBtu amid expectations for an above-average weekly increase in inventories. Storage levels are projected to rise by 61 bcf for the week ended July 3, surpassing the five-year average build of 51 bcf for the comparable period and underscoring broadly comfortable supply conditions.
At the same time, weather forecasts point to temperatures remaining mostly above seasonal norms through July 23, a pattern that should keep power-sector gas demand elevated. LNG export demand has also stayed robust, with average gas flows to major export terminals climbing to 17.8 bcfd so far in July, compared with 17.4 bcfd in June.
On the supply side, gas production in the Lower 48 has eased to 109.4 bcfd so far in July from 110.0 bcfd in June and remains below the record monthly high of 110.6 bcfd set in December 2025.
