04.08.202615:25:41UTC+00US Natgas Prices Fall to Over 3-Month Low

US natural gas prices fell below $2.70 per MMBtu, the lowest level in more than three months, as expectations of weaker demand and milder weather weighed on the market. Forecasts indicate moderating temperatures across much of the country in the coming weeks, reducing the likelihood of a meaningful rise in gas consumption.

Additional downward pressure is coming from record production and robust inventories. Storage levels have remained above the five-year average since March, supported by strong output and mild spring weather. Analysts estimate that, for the week ended July 31, inventories were about 6.6% higher than normal.

In July, gas production in the US Lower 48 states averaged a record 110.7 billion cubic feet per day. At the same time, flows to major LNG export terminals declined due to maintenance-related disruptions, curbing export demand.

Meanwhile, improving prospects for a US-Iran agreement and the potential reopening of the Strait of Hormuz have further eased concerns in the broader energy market, adding additional downward pressure on US natural gas prices.