US natural gas futures rose to $3.25 per MMBtu, their highest level in a week, supported by lower output and stronger demand from LNG export facilities. Production in the Lower 48 states has averaged 109.4 billion cubic feet per day (bcfd) so far in July, down from 110.0 bcfd in June and below the record monthly high of 110.6 bcfd set in December 2025.
At the same time, average gas flows to major LNG export plants have increased to 18.1 bcfd so far in July, up from 17.4 bcfd in June, signaling firmer overseas demand. Prices were further underpinned by expectations that the recent heatwave boosted gas consumption by power generators, who ramped up electricity output to meet elevated cooling needs, prompting additional withdrawals from domestic storage.
Still, further gains could be constrained. Weather forecasts now point to cooler conditions across the eastern half of the US through July 15, which may curb air-conditioning use and reduce gas demand for power generation.
