Natural Gas Market Note | 07.28.2026
Natural gas futures extend recent losses despite widespread heat.
Natural gas prices posted a second straight day of steep losses, with the August contract falling another $0.11 to settle at $2.66 per MMBtu ahead of expiration tomorrow. August has now lost $0.20 over the past week and $0.62 over the past month. Weakness also extended into the winter strip, which fell $0.06 to $3.51 and is once again pressing against new multi-year lows.
The latest forecasts continue to show plenty of heat, but the market has largely shrugged off the supportive demand outlook. Reduced LNG feedgas demand appears to be adding pressure, with export volumes falling even below already-soft recent levels. Some of that weakness could be tied to Gulf Coast heat affecting terminal operations. Regardless of the cause, the loss of export demand is giving the market further reason to remain comfortable in the face of rising power burn.
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