Strong production, ample inventories, soft LNG feedgas demand and high renewable power generation kept pressure on prices even as triple-digit heat hit Texas and other areas.
US natural gas futures were down 1.4% at $2.728 per MMBtu, holding near their lowest level in nearly twelve weeks as the market continued to discount summer heat and focus instead on strong production, abundant inventories and softer LNG feedgas demand. Output in the US Lower 48 states averaged 110.6 bcfd so far in July, up from 110.0 bcfd in June and matching the monthly record high reached in December 2025. Storage levels were 6.4% above the five-year seasonal average as of July 17 and were expected to widen to 6.6% above normal for the week ending July 24, reinforcing concerns about an oversupplied market. LNG feedgas flows to major export terminals averaged 17.2 bcfd this month, slightly below 17.4 bcfd in June, partly because of scheduled maintenance at Freeport LNG’s Texas facility. High renewable power generation was also seen limiting the amount of gas used to meet air-conditioning demand, while some regions including parts of the Great Lakes and Northeast were experiencing more comfortable temperatures. NatGasWeather.com said power burns had been underperforming even with hot weather patterns.