Natural gas Hits 4-week Low

US natural gas prices dropped more than 4% to $3.07 per MMBtu on Thursday, the lowest level in six weeks, pressured by planned maintenance at Freeport LNG in Texas and a larger-than-expected increase in storage. Freeport LNG said maintenance work at its pre-treatment and liquefaction facilities will begin on July 10, raising concerns about a temporary slowdown in export demand. Also, EIA data showed inventories increased by 61 billion cubic feet in the week ended July 3, above the five-year average build of 51 bcf, reinforcing expectations of comfortable supply. Despite the decline, weather forecasts continue to point to above-normal temperatures through July 23, supporting demand for gas-fired power generation. On the supply side, gas output in the Lower 48 states fell to 109.4 bcfd in July so far, from 110.0 bcfd in June and was below the record monthly high of 110.6 bcfd reached in December 2025.

Natural gas decreased to 3.07 USD/MMBtu, the lowest since June 2026. Over the past 4 weeks, Natural gas lost 3.28%, and in the last 12 months, it decreased 7.68%.

US natural gas futures held recent decline, hovering around $3.21 per MMBtu amid forecasts for a larger-than-usual weekly build in inventories. Gas stockpiles were estimated to rise by 61 bcf for the week ended July 3, exceeding the five-year average increase of 51 bcf for the same period, pointing to comfortable supply conditions. Meanwhile, weather forecasts indicate that temperatures will remain mostly above normal through July 23, likely keeping gas demand from power generators elevated. LNG export demand also remained firm, with average gas flows to major LNG export facilities rising to 17.8 bcfd so far in July, up from 17.4 bcfd in June. On the supply side, gas output in the Lower 48 states fell to 109.4 bcfd in July so far, from 110.0 bcfd in June and was below the record monthly high of 110.6 bcfd reached in December 2025.