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US Natural Gas Update: Futures Slide Amid Higher Supplies, Despite Bullish Weather Forecasts

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US natural gas futures declined sharply on Monday, retreating from a three-week high set last week, as rising supply began to counter the momentum from the heatwave.

Both the continuous Henry Hub contract and the front-month August 2026 contract were down by 2.41% to $3.200 per million British thermal units.

The July contract settled at $3.231 per million British thermal units at expiration, while August edged 0.24% lower to $3.287/MMBtu. The continuous Henry Hub contract fell 3.32% to $3.232/MMBtu.

Natural gas supplies continued to edge higher over the weekend to 108.3 billion cubic feet per day across the Lower 48 states, weighing on prices, according to NRG Energy.

Meanwhile, weather conditions remained bullish, with almost the whole of the country expected to see above-normal temperatures from July 06 to July 12, according to the National Weather Service, keeping air conditioning demand elevated, along with gas-fired power burn.

US LNG feedgas flows are expected to stay elevated, with estimates pointing to 19.17 Bcf in flows on Monday, according to the Bloomberg LNG Feedgas Model.

According to the Energy Buyer's Guide, the market is currently in "wait-and-see mode" regarding weather forecasts, while noting that any extension in the heat could "help fuel bullish sentiment, while a reversion to a milder temperature outlook would likely keep prices rangebound."

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