U.S. Natural Gas Prices Slip Amid Cooler Forecasts and Strong Demand

U.S. natural gas futures fell on Friday, with the August contract down about 1.5% as weather forecasts shifted slightly cooler and inventories remained well above the five‑year average. The Energy Information Administration reported a modest 32 billion cubic feet rise in weekly inventories, below expectations, indicating continued demand pressure. Production in the lower‑48 states stayed near record levels at roughly 111 billion cubic feet per day, while gas demand rose in Texas and the South because of higher temperatures and reduced wind generation.

Analysts also note longer‑term market support from concerns over Middle‑Eastern LNG supply disruptions, prompting Europe and Asia to seek more U.S. exports. Despite the price dip, excess inventories and high production keep the market vulnerable to future price swings.