US natural gas futures fell below $2.90 per MMBtu, the lowest since November 2024, due to milder weather forecasts, robust storage levels, and high output. The EIA lowered its price estimate by 3%, expecting inventories to end the injection season 2% above the five-year average. Prices are forecasted to rise in the coming months.

Natural gas production has increased, leading to higher inventory levels. The EIA expects production to grow by 2% over 2024 volumes, with a rise in drill rigs in gas-intensive shale plays. Falling oil prices may reduce associated gas production, but LNG exports are expected to increase, supporting prices later on.

US natural gas output and demand are predicted to hit record highs in 2025 before decreasing in 2026, with LNG exports rising. Weather patterns may affect prices, with cooler US weather and increased demand from Europe influencing the market. Natural gas prices typically bottom by August with normal to hot weather.

Read more at Yahoo Finance: US Natural Gas Prices Slump On High Inventories, Record Production