Natural Gas Prices Decline Amid Record Production
The U.S. natural gas market remains well supplied despite higher year-over-year demand trends. Total natural gas demand, including exports, of more than 118 Bcf per day through July is running 2.5 percent above the same period in 2025, according to preliminary data from Rystad Energy.
Growth has been driven by LNG feedgas deliveries and higher power sector consumption, while industrial and residential/commercial demand signals have flagged. On the supply side, dry gas production for the year so far has averaged 111.1 Bcf per day, 4.3 percent higher than year-ago levels.
Natural gas prices declined in July amid record production and softer LNG feedgas demand. Henry Hub futures prices fell nearly 15 percent for the month to $2.75 per MMBtu, while average day-ahead spot prices averaged below discounted levels in most regions relative to Henry Hub during July.