FX.co ★ US Natgas Prices Hover Near 2-Month Low

US natural gas prices inched up to $2.91 per MMBtu but remained close to a two-month low, pressured by rising production, expectations of softer demand, and reduced LNG export flows linked to planned maintenance at the Freeport LNG facility in Texas. Average gas output in the Lower 48 states has risen to 110.2 bcfd so far in July from 110.0 bcfd in June, a trend that could support further inventory builds amid forecasts for weaker consumption. As of July 3, gas inventories stood 6.6% above their five-year seasonal average, underscoring ample supply. The Commodity Weather Group reported on Tuesday that forecasts have turned cooler, with below-normal temperatures expected in the Southwest through July 23, likely curbing cooling demand. Meanwhile, maintenance at the 2.4-bcfd Freeport LNG terminal, which began on July 10 and is scheduled to continue until late August, is set to keep more supply on the domestic market.