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US Natural Gas Update: Futures Slide Amid Rising Supplies, Softening Demand

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US natural gas futures edged lower on Thursday, amid rising supplies and softening demand, ahead of the weekly gas storage report later in the day.

The September 2026 contract and the continuous contract each dropped by 0.81% to $2.700 per million British thermal units. The August contract expired at $2.725/MMBtu, up 2.4%.

Gas production is forecast at 108.8 billion cubic feet per day, up 0.4 Bcf/d, while demand continued to soften, with a 1.4 Bcf/d drop in gas-fired power demand, according to NRG Energy.

Markets are awaiting the US Energy Information Administration's Weekly Gas Storage Supplement, with forecasts pointing to a net injection of 37 Bcf, up from 32 Bcf last week, in line with the five-year average for this period at 26 Bcf, and in line with last year's net build, according to data compiled by Investing.com.

Meanwhile, a persistent heat dome is expected to dominate US weather, with peak afternoon temperatures across the Southwest and central plains expected to reach 105 to 110 degrees Farhenheit, according to Severe-Weather EU, leading to increased space cooling demand, and gas-fired power burn.

US LNG export feedgas flows were forecast at 18.16 Bcf on Thursday, in line with the 30-day moving average, according to the Bloomberg LNG Feedgas Model.

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