Natural gas is down by 6.08%

Natural gas decreased 6.08% to 2.5988 USD/MMBtu

US natural gas futures fell below $2.7 per MMBtu, extending losses to their lowest level in three months, weighed down by strong production, comfortable inventory levels, and weak LNG feedgas demand. Average gas output in the US Lower 48 states rose to 110.6 bcfd so far in July from 110.0 bcfd in June, matching the monthly record high reached in December 2025. The increase in production has added to concerns over an oversupplied market, with inventories remaining 6.4% above the five-year seasonal average as of July 17 and expected to rise to 6.6% above normal for the week ending July 24. LNG export demand also softened, with gas flows to major export terminals averaging 17.2 bcfd so far this month, down slightly from 17.4 bcfd in June, partly due to scheduled maintenance at Freeport LNG’s facility in Texas. Prices were also pressured by updated forecasts pointing to cooler weather across the central and eastern US in the coming weeks, reducing electricity demand for air conditioning.

US natural gas futures slid more than 3.5% to $2.77 per MMBtu on Monday, the lowest since May 8, tracking the decline in global energy prices as Middle East hostilities paused. Iran said on Sunday that it had halted retaliatory attacks against US allies in the region after Washington stopped its strikes on the country since Friday. US gas prices also dropped amid ample supply conditions, with EIA data showing that gas inventories remained 6.4% above the five-year seasonal average as of July 17, while average gas output in the Lower 48 states rose to 110.4 bcfd so far in July from 110.0 bcfd in June. LNG export demand also eased, with gas flows to major export terminals averaging 17.2 bcfd so far this month, slightly below 17.4 bcfd in June, partly due to scheduled maintenance at Freeport LNG’s facility in Texas. Meanwhile, temperatures are forecast to remain mostly above normal through August 8, which is likely to keep gas demand from power generators elevated to meet cooling needs.