US natural gas prices dropped more than 4% to $3.07 per MMBtu, the lowest level in six weeks, after the latest EIA data showed an above-average weekly build in inventories. Gas stockpiles increased by 61 bcf in the week ended July 3, surpassing the five-year average rise of 51 bcf for the same period and signaling comfortable supply conditions.
At the same time, weather forecasts suggest temperatures will remain mostly above normal through July 23, which should keep gas demand from power generators elevated. LNG export demand also stayed strong, with average gas flows to major US LNG export facilities rising to 17.8 bcfd so far in July, up from 17.4 bcfd in June.
On the supply side, gas output in the Lower 48 states slipped to 109.4 bcfd so far in July from 110.0 bcfd in June, remaining below the record monthly high of 110.6 bcfd set in December 2025.
