In continuing the trend of monthly summertime settlements expiring in the low $3 range, the August 2025 natural gas contract settled at $3.081. The prompt-month September 2025 contract finally settled below the $3 psychological barrier on Monday, and we’re waiting to see if the bullish length held by speculators will be liquidated — causing downward pressure — or if consumers will keep prices supported through high demand.

As of the latest report, U.S. natural gas storage stands at 3,130 billion cubic feet (Bcf), with all regions reporting inventories above their respective 5-year averages. Total storage levels now stand 173 Bcf above the 5-year average, with many analysts predicting storage levels of over 3.9 trillion cubic feet (Tcf) as we enter the winter.

At over 108 Bcf per day (Bcf/d), U.S. production is at historically high levels, helping to offset historically high exports of liquefied natural gas (LNG). The new LNG exporting facility, Plaquemines, which started processing natural gas at the end of 2024, is now taking deliveries of over 3 Bcf/d.

Early August has offered many central and eastern locations a noticeable reprieve from the heat and humidity of July, as some areas have seen temperatures average as much as 5 to 10 degrees below the 30-year normal. A return to seasonably hot weather is anticipated for the remainder of the month, with temperatures more commonly fluctuating between normal and above-normal levels.

Summer 2025 is poised to finish in the top 10 hottest nationally since 1950 based on power-weighted cooling degrees. Nationally, 2025 will likely rank cooler than 2024, but many Midwestern and Northeastern areas are anticipated to finish warmer than last summer.