US Natural Gas Prices Plummet on Record Output and LNG Export Plant Flows

US natural gas prices have fallen to an 11-week low due to record output and lower flows to liquefied natural gas export plants. The front-month gas futures for August delivery on the New York Mercantile Exchange (NYMEX) dropped by 9.3 cents, or 3.2%, to USD2.778 per million British thermal units.

This marks a significant decline of 15% so far this month, with speculators boosting their net short futures and options positions on the NYMEX and Intercontinental Exchange to their highest levels since March 2024, according to the US Commodity Futures Trading Commission’s Commitments of Traders report.

The premium of futures for September over August rose to a record high for a third day in a row, indicating that the market does not seem concerned about supplies meeting demand in August, the last month of the peak summer air-conditioning season.