US natural gas futures climbed toward $2.90 per MMBtu but remained near a two-month low, pressured by ample domestic supply and softer LNG export demand. As of July 10, gas inventories stood 6.4% above the five-year seasonal average, underscoring comfortable supply conditions.
Production also remained robust, with average output in the Lower 48 rising to 110.5 bcfd so far in July, up from 110.0 bcfd in June. At the same time, gas flows to major LNG export terminals edged down to 17.3 bcfd in July to date, compared with 17.4 bcfd in June. The decline was partly driven by scheduled maintenance at Freeport LNG’s export facility in Texas, which reduced the volume of gas processed for export and kept more supply in the domestic market.
Looking ahead, Tropical Storm Bertha presents an additional risk to LNG export facilities along the Gulf Coast in the coming days. The comfortable US supply picture stands in contrast to tighter LNG availability for European and Asian buyers, where flows from the Persian Gulf have been disrupted amid renewed tensions between the US and Iran.
