US Natural Gas Prices Plummet on High Inventory and Production
Natural gas prices in the US have plummeted by 4% to $265 per million British thermal units (MMBtu) due to a surge in inventory levels and production. The current inventory is 6.6% higher than the five-year average, with minimal expectation of a drop until winter.
The summer demand for natural gas is typically low, and the abundant supply poses no risk of being severely drained. Gas production has increased in July, adding more liquefied natural gas (LNG) to already high levels, exacerbating the oversupply problem.
According to data, gas output now averages 110.6 billion cubic feet per day (bcfd), up from the previous month and at its highest point for 2026. The market is concerned that rising production will combine with high inventory to create dramatically lower prices.