U.S. natural gas futures continued their downtrend, dropping to approximately $4.80 per MMBtu on Tuesday. This followed a significant 7.1% decrease on Monday, pulling further away from the three-year highs observed earlier in the month. The milder weather forecast up to December 23rd has reduced pressure on demand. Meanwhile, near-record production levels and substantial storage capacities persistently weigh on prices. In December, average gas production in the Lower 48 states rose to 109.7 billion cubic feet per day (bcfd), surpassing November's record of 109.6 bcfd. This robust production has allowed companies to amass larger-than-normal inventories, currently around 5% above the seasonal average. LSEG anticipates that total U.S. demand, including exports, will rise to 146 bcfd next week, up from the current week's 143.8 bcfd.