US Natural Gas Rises on Hot Forecasts as July Contract Expires

US natural gas futures rose on Friday, the final trading day for the July contract, as weather forecasts continued to call for above-average temperatures across much of the country in early July. The hotter outlook boosted expectations for cooling demand, supporting prices despite a drop-off in liquidity near expiry that made individual transactions more impactful on the market.

The July contract, which expires at the close of trading, saw increased volatility as traders rolled positions or closed out ahead of expiration. The broader market remains focused on supply-demand balances, with production levels steady and storage injections ongoing. The premium for the August contract over July narrowed as the market priced in the near-term weather-driven demand. NowPrice live charts show the prompt-month contract reacting to each weather model update, with traders closely watching the 8-14 day outlook for sustained heat.

Looking ahead, traders will monitor the weekly storage report from the Energy Information Administration for confirmation of robust cooling demand. The transition to the August contract as the new front-month will bring renewed focus on production trends and LNG export flows. Any shift in the weather forecast toward cooler conditions could trigger a sharp pullback, but for now the market remains supported by the summer heat pattern.