After last week’s consistent rally, markets plummeted today. NYMEX futures settled down over 20 cents for months the rest of this year, the front month settling at $3.32 US/mm, down 24 cents. The last day of futures trading is July 29, 2025, so this week traders will begin to roll over their positions or clear them out.

Temperatures in the lower 48 are currently below normal, but expected to increase to above by the end of the week. That being said, the forecasts are not as extreme as earlier estimates suggested, partially explaining the sell-off. Additionally, production in the USA is up. Reuters reports that both the monthly average (for July so far) and the daily output are hitting new all-time highs. So far in July, the monthly record is 107.2 Bcf/d, the prior record being 106.4 Bcf/d in June, and July 18th’s daily output hit 108.5 Bcf/d, the prior record being 107.9 Bcf/d on July 14. Utilities are working hard injecting gas, power generators are keeping the air conditioners on, LNG facilities are ramping up exports, and producers are doing their best to balance the increased demand.