13.07.202615:27:34UTC+00US Natgas Prices Fall to 2-Month Low

US natural gas prices fell more than 2%, dropping below $2.90 per MMBtu to their lowest level in two months, as the market came under pressure from rising production, softer demand expectations, and reduced LNG export flows amid planned maintenance at the Freeport LNG facility in Texas. Market estimates indicate that inventories for the week ended July 10 are expected to remain about 6.6% above the five-year average, underscoring comfortable supply conditions. The latest EIA data show that as of July 3, US gas stocks were already 6.6% above the seasonal norm, supported by mild spring weather that enabled producers to build inventories. In the Lower 48 states, gas output has risen to 110.2 billion cubic feet per day so far in July, up from 110.0 bcfd in June. While warmer-than-normal temperatures forecast through July 28 should bolster power-sector demand, reduced LNG feedgas flows resulting from the Freeport maintenance shutdown are likely to keep additional pressure on prices.