US natural gas futures slid to a two-month low as ample domestic supply outweighed export disruptions abroad. A larger-than-expected storage build, rising Lower 48 production, and near record renewable output all pushed prices lower.
US natural gas futures fell to $2.85 per MMBTu, a two-month low, breaking away from higher prices in other benchmarks as ample domestic supply shielded the US from export pressures tied to the Middle East. The week to July 10th added 41 billion cubic feet of gas to domestic storage, extending recent builds that ran sharply higher than expected.
That build lined up with outages at Freeport LNG’s export facility in Texas, which kept gas from being readied for export and left more supply available for domestic use. Production reinforced the trend, as average output in the Lower 48 states rose to 110.2 bcf per day so far in July from 110.0 the previous month.
Demand from power plants also softened. Solar and wind generation across the US climbed to near record highs in July, taking market share from gas-fired plants. That ample supply of natural gas contrasted with limited LNG flows reaching major European and Asian consumers as Iran and the US resumed blockading tankers leaving the Persian Gulf.
Source: TradingView
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