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US Natural Gas Update: Prices Jump on Hotter Forecast Across Eastern US

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US natural gas futures rose in after-hours trading on Wednesday as persistent cooling demand and forecasts of hotter weather supported prices ahead of the September contract expiration.

The front-month Henry Hub contract rose 3.29% to $2.861/MMBtu, while the continuous contract gained 2.98% to $2.905/MMBtu.

Futures rose across most of the curve, led by the prompt month. Winter 2026-27 gained 2 cents, and Summer 2027 rose 1 cent at settlement, the Energy Buyers' Guide said.

The Commodity Weather Group said Wednesday that forecasts had shifted hotter, with well-above-average temperatures expected across the eastern two-thirds of the US from Aug. 31 through Sept. 4, boosting cooling demand.

Power-generation demand has strengthened in August, with month-to-date volumes above 2025 levels, the Energy Buyers' Guide said. Total demand was 79.0 Bcf/d, up 8.3% from a year earlier, Barchart said, citing BNEF data.

Aegis Hedging said power-sector gas demand has nevertheless remained relatively weak this summer despite robust Lower-48 electricity demand.

Renewables have displaced substantial gas demand, while coal-to-gas switching has not been enough to offset the decline, it said.

Natural gas demand has remained below the five-year average and the levels of the past two years for much of summer 2026, despite record seasonal electricity demand, Aegis said. Expected data-center-driven growth in gas-fired generation has yet to appear in the data, it said, adding that renewables have been the bigger factor this year.

Celsius Energy put gas' share of the power mix at 45% for the seven-day average ended Aug. 24, down 1.9% from a year earlier.

US dry gas production was 111.4 Bcf/d, up 3.2% year on year, Barchart said, citing BNEF data. Estimated LNG net flows to US export terminals were 18.3 Bcf/d Wednesday, up 8.3% from the prior week, according to BNEF. Cheniere's Corpus Christi plant appeared to have returned to full strength after a short maintenance period, Reuters reported.

The market is awaiting Thursday's US Energy Information Administration storage report. Expectations are for a 15-27 Bcf build for the week ended Aug. 21, versus a five-year average increase of 33 Bcf.

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