US natgas hits two-month low on higher output and lower demand outlook
UNG•Output, demand, and storage outlook
Financial group LSEG said average gas output in the U.S. Lower 48 states rose to 110.2 billion cubic feet per day (bcfd) so far in July, up from 110.0 bcfd in June, but still below the monthly record high of 110.6 bcfd in December 2025.
Analysts said mostly mild weather during the spring allowed energy firms to stockpile more gas than usual. They projected the amount of gas in inventories held at 6.6% above normal during the week ended July 10, the same as the previous week. EIA/GAS NGAS/POLL
Meteorologists forecast the weather would remain mostly warmer than normal through July 28, keeping the amount of gas power generators burn high as homes and businesses crank up air conditioners. About 40% of U.S. power generation comes from gas-fired plants.
LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 110.2 bcfd this week to 109.1 bcfd next week. Those forecasts were lower than LSEG's outlook on Friday.
Average gas flows to the nine big U.S. LNG export plants rose to 17.6 bcfd so far in July, up from 17.4 bcfd in June, but remain below the monthly record high of 18.8 bcfd in April.
That increase in average LNG feedgas came despite the reduction in flows to Freeport LNG's 2.4-bcfd export plant in Texas for planned work from July 10 to late August.
Natural gas futures fall to two-month low
U.S. natural gas futures fell about 3% to a two-month low on Monday on rising output, forecasts for less demand over the next two weeks than previously expected, and an expected decline in flows to liquefied natural gas (LNG) export plants during maintenance at Freeport LNG in Texas.
Front-month gas futures for August delivery NGc1 on the New York Mercantile Exchange fell 8.8 cents, or 3.0%, to $2.852 per million British thermal units (mmBtu), putting the contract on track for its lowest close since May 12.
That put the front-month on track to decline for four days in a row for the first time since mid-April and kept it in technically oversold territory for a second day in a row also for the first time since mid-April.
