Natural Gas Market Note | 07.20.2026
Natural gas gives up ground ahead of milder weather.
Natural gas futures moved lower on Monday, with modest losses extending across nearly the entire forward curve. The August 2026 contract fell 5 cents to settle at $2.86 per MMBtu, while the upcoming winter strip declined 2 cents to $3.53 per MMBtu. Although daily losses remained limited, the front of the curve continues to trade near the bottom of its recent range and is now down more than 40 cents over the past month.
The market remains weighed down by mild weather expectations following last week’s brief heat, with forecasts showing generally cooler conditions returning across much of the East. Traders are also monitoring a tropical disturbance in the Gulf, which could disrupt LNG exports and reduce power generation demand along the coast. While there is always risk to offshore production, the current system appears unlikely to cause a significant interruption to Gulf supply. With no sustained heat visible in the forecast, prices may struggle to regain meaningful ground in the near term.
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