NEW YORK: US natural gas futures eased about 1% on Wednesday on recent increases in output, a drop in the amount of gas flowing to liquefied natural gas (LNG) export plants after Freeport LNG in Texas shut for Hurricane Beryl and a tremendous surplus of gas in storage for this time of year.

Raised demand forecasts for the next two weeks gave prices some support, as a brutal heat wave was expected to persist through at least late July, stoking demand for air conditioning and forcing power generators to burn lots of gas.

Analysts said gas stockpiles were about 18% above normal levels.

About 1.7 million homes and businesses in Texas remained without power on Wednesday in the wake of Hurricane Beryl.

Front-month gas futures for August delivery on the New York Mercantile Exchange fell 2.5 cents, or 1.1%, to $2.319 per million British thermal units (mmBtu), in technically oversold territory for a second day.

Financial firm LSEG said gas output in the Lower 48 US states rose to an average of 102.4 billion cubic feet per day (bcfd) so far in July, up from an average of 100.2 bcfd in June and a 17-month low of 99.5 bcfd in May. US output hit a monthly record high of 105.5 bcfd in December 2023.

Output slowed as prices dropped, hitting a 3-1/2 year low in March.