U.S. Gas Prices Hit 12-Month Low Despite Hot Summer, Storage 6% Above Normal

U.S. natural gas prices dropped below $2.9 per million British thermal units (mmBtu), reaching their lowest level since November 2024.

The decline was driven by near-record production levels, high storage inventories, and expectations of milder weather ahead. August production in the lower 48 states averaged 108.3 billion cubic feet per day, up from July’s record of 107.9 Bcf/d.

Despite a hotter-than-usual summer, abundant supply has allowed above-average storage injections, with stockpiles now about 6% above seasonal norms.