Natural Gas Drops Further to 2-Month Low
2026-07-16 15:01
By
Andre Joaquim
1 min. read
US natural gas futures fell to $2.85 per MMBTu, a two-month low, contrasting with higher prices in other benchmarks as ample domestic supply shielded the US from the export pressures from the Middle East.
41 billion cubic feet of gas were added to domestic storages in the week to July 10th to extend recent builds that were sharply higher than expected.
The result was consistent with outages in Freeport LNG's export facility in Texas prevented gas flows from being ready for export, increasing the available supply of gas for domestic use.
On top of that, average gas production in the Lower 48 states increased to 110.2 bcf per day so far in July from 110.0 in the previous month.
Meanwhile, solar and wind power generation stateside rose to their near record highs in July, taking market share from gas-powered power plants.
The ample supply contrasted with limited LNG flows for major European and Asian consumers as the Iran and US resumed blockading tankers from leaving the Persian Gulf.