US gas prices hit nine-week low on record output and expectations of lower demand

US natural gas prices lost about 6% and fell to a nine-week low amid record production over the past weekend and forecasts of weaker demand next week.

Accordion to LSEG, the Lower 48 states produced 106.3 billion cubic feet of gas per day this month, up from 106.2 billion in March. Last weekend, daily US gas output posted an all-time high of 107.4 billion cubic feet per day.

However, analysts believe that April's 14% drop in the price of US crude oil could lead to a reduction in drilling by domestic energy companies in the coming weeks. This, in turn, may result in a decrease in gas output associated with oil production and drive up gas prices. 

Additionally, LSEG forecasts gas consumption in the Lower 48 to average 101 billion cubic feet per day this week. Next week, demand is expected to drop to 97.2 billion cubic feet per day due to warmer weather.