US Natgas Prices Fall to 2-Month Low

US natural gas prices fell more than 2% to below $2.90 per MMBtu, the lowest level in two months, pressured by rising production, weaker demand expectations, and lower LNG export flows during planned maintenance at Freeport LNG in Texas. Market estimates showed inventories were expected to remain around 6.6% above the five-year average for the week ended July 10, reflecting comfortable supply conditions. The latest EIA data showed US gas stocks were already 6.6% above the seasonal average as of July 3, supported by mild spring weather that allowed producers to build inventories. Gas output in the Lower 48 states increased to 110.2 billion cubic feet per day in July so far, up from 110.0 bcfd in June. Although warmer-than-normal temperatures are forecast through July 28, supporting power sector demand, lower LNG feedgas flows due to Freeport LNG’s maintenance shutdown are expected to weigh on the market.

US natural gas prices dropped further to $2.90 per MMBtu, the lowest in two months, amid a milder weather outlook, reduced gas flows to LNG export facilities, and comfortable supply conditions. Forecasts shifted toward cooler temperatures in the coming weeks, likely curbing demand for gas-fired power generation as air-conditioning usage declines. Additionally, Freeport LNG deliveries fell as the exporter began a major maintenance turnaround at its pre-treatment and liquefaction facilities on July 10, which will last until the end of August. Moreover, the latest EIA weekly report showed that domestic gas inventories were 6.6% above the five-year average as of July 3, highlighting a well-supplied market.

US natural gas prices held around $3.0 per MMBtu on Friday after sliding more than 6% in the previous session to a six-week low, amid the prospect of lower gas flows to LNG export facilities as well as data pointing to ample domestic supply. Freeport LNG said that maintenance work at its pre-treatment and liquefaction facilities would begin on July 10 and continue through late August, temporarily reducing feedgas demand. In addition, the EIA reported that energy firms injected 61 Bcf of natural gas into storage for the week ended July 3, widening the inventory surplus over the five-year average to 185 Bcf from 175 Bcf a week earlier. Meanwhile, forecasts for above-normal temperatures through July 23 are expected to keep gas demand from power generators elevated. On the supply side, gas output in the Lower 48 states fell to 109.7 bcfd so far in July, from 110.0 bcfd in June and was below the record monthly high of 110.6 bcfd reached in December 2025.