09:29 AM EDT, 07/05/2024 (MT Newswires) -- Natural gas prices fell to a seven-week low early on Friday as increased production of the fuel offsets a jump in cooling demand caused by summer heat.

Gas for August delivery was last seen down US$0.03 to US$2.39 per million British thermal units, the lowest since May 14.

The drop comes even as hot summer weather boosts cooling demand, with the National Weather Service seeing all states with seasonal or hotter temperatures in its 8-10 day forecast.

However, strong demand is being met with higher production, as producers return production shut in earlier this year to market.

"Natural gas prices continued to trickle lower amid persistently high inventories and returning production. We believe a majority of voluntary curtailments are now back online resulting in the recent uptick in production volumes. The hottest part of the summer still lies ahead, providing some hope for strong gas-fired power demand needs," RBC Capital Markets analyst Scott Hanold noted.

The Energy Information Administration on Wednesday reported U.S. natural-gas inventories rose by 32-billion cubic feet last week, leaving inventories at 3.13-trillion cubic feet, 18.8% above the five-year average.