US Natural Gas Futures Extend Gains on Heat Wave Forecast

Key Facts

Amid forecasts of a record heat wave, U.S. natural gas futures extended their gains, supported by expectations of temperatures significantly above normal over the next two weeks, according to The Wall Street Journal. The hot weather increases the use of air conditioning, boosting demand for natural gas used in power generation. This period marks the peak cooling season in the United States.

This rally comes as meteorological data points to persistent heat across much of the country. Current natural gas inventories are notably below the five-year average, adding upward pressure on prices. Analysts suggest that cooling demand could push gas withdrawal rates above seasonal norms if the heat wave persists.

August natural gas futures settled at $2.85 per million British thermal units on June 26, 2026, per market data. Traders will focus on the weekly storage report from the Energy Information Administration (EIA) due Thursday, as well as updated weather models to gauge the heat wave's duration. Any surprises in storage data or weather forecasts could trigger sharp price moves in the coming sessions.