US natural gas futures fell to $2.85 per MMBtu, a two-month low, diverging from gains in other global benchmarks as abundant domestic supply insulated the US market from export-driven pressures linked to Middle East tensions. In the week to July 10th, 41 billion cubic feet of gas were injected into domestic storage, extending recent builds that came in well above expectations.
This inventory increase aligned with ongoing outages at Freeport LNG’s export facility in Texas, which curtailed export-ready gas flows and redirected supply back into the domestic market. Further adding to the surplus, average gas production in the Lower 48 states rose to 110.2 billion cubic feet per day so far in July, up from 110.0 bcf per day in June.
At the same time, US solar and wind generation climbed toward near-record levels in July, eroding gas-fired power plants’ share of the power mix. This ample US supply stood in sharp contrast to constrained LNG availability for major European and Asian buyers, as Iran and the United States resumed efforts to block tankers from departing the Persian Gulf.
