US Natural Gas Prices Pulled by High Production and Strong Demand

US natural gas prices are being pulled in two directions due to high production and strong summer demand, LNG exports, and short-term supply disruptions. Daily production across the Lower 48 states fell sharply over two days, with a decline of about 3 billion cubic feet per day to 108.9 billion cubic feet per day, its lowest level in two weeks.

The majority of this decline came from Louisiana and Arkansas, which provided immediate support to prices. However, this did not change the wider supply picture as average production had already reached a record high of about 111.2 billion cubic feet per day in early April.

This creates a market where short-term production changes can move futures, even when overall supply remains strong. Temporary outages or regional disruptions may tighten the market for a limited period, but sustained price strength will depend on demand absorbing continued production growth.