North American natural gas futures were battered this week as markets continued to be flush with supply amid light demand.

The July New York Mercantile Exchange gas futures contract dropped 10.8 cents day/day on Thursday and settled at $2.158/MMBtu. August lost 8.5 cents to $2.273.

U.S. production topped 101 Bcf/d on Wednesday. Throughout May, it consistently held near or above the century mark. The weather hasn’t yet turned ferociously hot, meaning cooling demand is still light.

Mexico pipeline imports of U.S. gas are also creeping up as summer nears. The 10-day average through Thursday was 5.75 Bcf/d, according to NGI calculations. All 10 flow days stayed close to 6 Bcf/d or over 6 Bcf/d, according to NGI analyst Josiah Clinedinst. The flows do not include intrastate...