NEW YORK: US natural gas futures fell to a two-week low on Monday on a rise in production and forecasts for less cooling demand through early August than previously forecast.

Front-month gas futures for August delivery on the New York Mercantile Exchange fell 7.1 cents or 2.4 percent to settle at $2.899 per million British thermal. Earlier, prices touched a low of $2.880, their lowest since July 10.

The contract declined for a fourth session in a row, its longest losing streak since early July.

Thomson Reuters data projected US gas consumption would slide to 77.5 billion cubic feet per day (bcfd) next week from 78.2 bcfd this week as hot weather moderates and air conditioning demand falls.

US gas output in the lower 48 states, meanwhile, was expected to jump to 72.6 bcfd, the highest since April 2016, which boosted average output over the past 30 days to 71.9 bcfd, the data showed.

That was up from 70.5 bcfd over the same 30-day period in 2016 but fell well short of the 73.7 bcfd during that time in 2015 when output was at a record high.

US exports were expected to average 8.1 bcfd this week, up 35 percent from a year earlier, the data showed.

Analysts said utilities likely added 34 billion cubic feet of gas into storage during the week ending July 21, leaving inventories about 4 percent above normal for this time of year.

That compared with a 20 bcf increase the same week a year earlier and a five-year average build of 47 bcf.

Meteorologists forecast temperatures in August would be near average after a warmer-than-normal June and July.

Analysts said utilities will likely stockpile just 1.7 trillion cubic feet of gas during the April-October injection season because relatively low output so far this year, rising sales abroad and higher-than-average cooling demand this summer limited the amount of fuel available for storage.

That build, which is far below the five-year average of 2.1 tcf, would leave inventories at 3.8 tcf at the end of October, below the year-earlier record of 4.0 tcf and the five-year average of 3.9 tcf. After two unusually mild winters, traders say the possibility of low inventories and normally cold weather from December through February could cause prices to spike later this year.—Reuters