US Natural Gas Extends Drop

US natural gas futures fell to $2.73 per MMBtu, extending losses to their lowest level in nearly twelve weeks, as strong production, comfortable inventory levels, and weak LNG feedgas demand continue to weigh on prices. 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. Meanwhile, temperatures are forecast to remain mostly above normal through August 11, likely keeping power generators’ gas demand elevated to meet cooling needs.




