U.S. natural gas futures extend losses as selling pressure persists amid inventories that remain well above seasonal averages and softer liquefied natural gas demand caused by ongoing terminal maintenance. The domestic market continues to look toward summer weather patterns as the primary catalyst for demand recovery, with limited near-term support from rising global prices driven by the escalation of conflict in the Middle East.

Analysts highlight deteriorating weather forecasts as a key bearish factor. "Notable weather weakening over the past 24 hours for weeks 2 and 3—particularly over the central and eastern U.S.—may further undermine physical support in late July," Eli Rubin of EBW Analytics wrote in a research note.

The benchmark Nymex contract fell 1% to settle at $2.868/mm Btu, reflecting the market's cautious stance amid abundant supply and uncertain demand signals.