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US Natural Gas Update: Futures Down Amid Robust Output, Comfortable Storage Levels

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US natural gas futures were down on Monday, approaching their lowest levels since mid-April, as markets were weighed down by robust output and comfortable inventory levels.

The front-month Henry Hub contract and the continuous contract both fell 1.28% to $2.698 per million British thermal units.

Natural gas output rose to 109.7 billion cubic feet per day over the weekend, with the August monthly average now at 108.7 Bcf/d, which was 0.7 Bcf/d above the August 2025 average, according to NRG Energy.

Meanwhile, demand continued to fluctuate between 86 Bcf/d and 89 Bcf/d, primarily due to volatility in power demand, owing to milder temperatures, storm outages, and other factors impacting demand.

At the same time, US working gas in storage sits at a comfortable 3,153 Bcf for the week ending August 7, which was 25 Bcf, or 1% below the same period last year, but 198 Bcf, or 7% above the five-year average for this period, according to the US Energy Information Administration.

The EIA reported a net injection of 36 Bcf into storage, which was ahead of forecasts at 31 Bcf, and the five-year average for this period, at 33 Bcf.

Weather forecasts continued to remain bullish, with above-normal temperatures set to blanket most of the country from August 24 through August 30, according to the National Weather Service.

However, in the near term, a forecast Super El Nino is expected to bring above-normal snowfall and potentially significant winter storms across the Central Plains, Midwest, East, Mid-Atlantic and parts of the Southeast, according to Severe-Weather EU, potentially boosting heating demand and supporting gas prices.

US LNG export feedgas flows were expected to edge higher on Monday, at 18.88 Bcf, above the 30-day moving average of 18.05 Bcf, according to the Bloomberg LNG Feedgas Model.

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