09:33 AM EDT, 07/09/2025 (MT Newswires) -- Natural gas futures fell for a second day on Wednesday as strong production is expected to boost inventories of the fuel while long-term forecasts see more moderate temperatures on the way.

Gas for August delivery was last seen down US$0.12 to US$3.22 per million British thermal units, the lowest since May 28.

The drop comes after the Energy Information Agency on Tuesday raised its forecast for the amount of gas stored for winter use at the Oct.31 end of the cooling season. In its monthly Short-Term Energy Outlook, the agency raised its forecast for inventories to end the season at 3.91-trillion cubic feet, up 5% from its June forecast.

"As a result, we now expect the Henry Hub spot price will average about $3.40 per million British thermal units in 3Q25, down 16% from our June forecast," the agency said.

Milder weather is on the way for some states, easing cooling demand. The National Weather Service's six to 10 day outlook see states between the Rocky Mountains and Mississippi River with seasonal or cooling temperatures over the period, even as the eastern and West Coast states remain hotter than usual over the period.