U.S. natural gas futures extended losses Friday, with the August contract falling 2.4% to $2.939/mm Btu after a larger-than-expected storage build and Freeport LNG's announced maintenance plans pressured prices. The decline marks new contract lows, pushing the market into a bearish technical structure according to Dennis Kissler of BOK Financial.

Storage levels remain 6.6% above the five-year average, a surplus that continues to outweigh supportive weather forecasts. While models show slightly cooler temperatures ahead, they still project warmer-than-normal conditions across key demand regions. Most traders maintain a "sell the rallies" stance, treating any price bounce as an exit opportunity rather than an entry point.

The Freeport LNG outage removes a major export demand source at a time when domestic supply remains ample. With the facility's maintenance timeline uncertain, the market lacks a near-term catalyst to absorb the storage overhang. August futures have now erased gains from earlier this month, retesting levels last seen in late spring.