US natural gas futures inched up to around $2.75 per MMBtu after the latest EIA report showed a smaller-than-expected storage build. Inventories rose by 28 billion cubic feet in the week ended July 24, undershooting market forecasts for a 35 bcf increase.
Even with the slight price rebound, gas futures hovered near their lowest levels since early May, as overall storage remained 6.4% above the five-year seasonal average, underscoring abundant supply. Output also stayed robust: production in the Lower 48 has averaged 110.6 bcfd so far in July, in line with the record monthly high set in December 2025.
LNG export demand eased marginally, with feedgas flows to major export facilities averaging 17.2 bcfd, down from 17.4 bcfd in June, partly due to scheduled maintenance at Freeport LNG’s plant in Texas. In addition, updated weather models projecting cooler conditions across the central and eastern United States in the coming weeks pressured prices, as reduced air-conditioning use is expected to curb gas-fired power demand.
