Henry Hub natural gas futures dropped to $2.10 per MMBtu, a three-month low, as forecasts point to below-normal cooling demand across the southern United States through late July.

Storage inventories are running about 9% above the five-year average after a mild start to summer, easing concerns about supply tightness heading into peak air-conditioning season.

LNG feedgas deliveries held near record highs above 15 billion cubic feet a day, with new capacity at Plaquemines and Corpus Christi absorbing some of the domestic surplus.

Traders say prices could firm quickly if a heatwave materializes in August, but for now oversupply concerns are outweighing weather risk in the futures curve.