U.S. natural gas prices fell more than 3% on Monday to around $2.64 per million British thermal units, approaching their lowest levels since mid-April as strong domestic production and elevated inventories outweighed support from hot-weather demand. Henry Hub futures were recently around $2.64/MMBtu.
Storage data reinforced the supply picture. U.S. energy companies added 36 billion cubic feet of natural gas to inventories during the week ended Aug. 7, bringing working gas in storage to 3,153 Bcf, according to the Energy Information Administration.
The build exceeded expectations and pushed inventories further above their five-year average. The EIA now forecasts U.S. natural gas inventories will reach a record 3,985 Bcf by the end of October, about 5% above the five-year average.
Production has also remained elevated. The EIA expects U.S. marketed natural gas output to average a record 122.5 Bcf per day in 2026, surpassing the previous annual record of 118.5 Bcf/d set in 2025. Production growth has been concentrated particularly in the Permian and Haynesville regions.
At the same time, reduced demand from liquefied natural gas export facilities has contributed to downward pressure by leaving more supply available domestically. The EIA said its latest downward revision to natural gas prices reflects both robust production and lower LNG feedgas demand.
Hotter-than-normal temperatures are providing some support through increased electricity demand for cooling, but have so far been insufficient to offset the broader supply conditions.
The EIA expects Henry Hub spot prices to remain below $3 per MMBtu until November, with abundant inventories heading into the winter limiting near-term price pressure.
